They rest and then head into the next crypt/dungeon of Xeroxen. They encounter several traps which Dohnt takes care of. They find chained up a fiery creature and a young beholder which seem friendly enough. They free them and they join the party and head further into the dungeon. They encounter a large giant who is the "protector" of his "friend". He doesn't budge, eventually he is relieved and another version of Xeroxen appears. After a good conversation, they convince him to at least take "just the tip" of the dagger to prove their story. He agrees and pops he like a bad balloon covering everyone in chopped meat and goo.
They use the compass to head towards the next Xeroxen. They get to the crypt, dismantle the entry traps and enter the next lair.
