Since arriving in Winterhaven, the heroes had heard the same name on multiple occasions, the name of the creature behind the kobold attacks: Irontooth. The most recent kobold ambush had provided them with directions to the kobolds' lair, with a promise that they'd find many kobolds there, as well as the goblin known as Irontooth. Undaunted, the heroes followed the trail through the woods to a small clearing by a cliff, complete with a cascading waterfall. Within the cliff's face, and behind the waterfall, were enterences into a cave of some sort: the kobold lair. The fact that this was the kobold lair was made immediately apparent by the fact that several kobolds were guarding the outside of the cave.
The heroes had the advantage as they approached; the kobolds had not yet noticed them. Most of the kobolds were standing in or around the stream coming from the waterfall, though one particularly well-armored kobold was standing in what seemed to be a magic circle etched on the ground. Sredni Vashtar quickly identified the circle as a simple enchantment used to improve combat ability, and told the others that it would give them an advantage if they used it. Chance and Kraygin charged through the trees and attacked the kobold in the circle, while Shava fired a pair of arrows at a lightly-armored kobold near one of the cave mouths.
The battle was quick; most of the kobolds fell to Kraygin's fiery breath and spinning halberd, while Chance and Sredni kept the armored kobold busy, eventually defeating him. The lightly-armored kobold charged at Shava, but she dodged his blows and sent arrows flying back in return. When it was clear that the battle was not going their way, a kobold slinger near the waterfall shouted, "Irontooth must be warned!" and ran into the cave, followed closely by the skirmisher that had been attacking Shava.
The party rested for a few moments, but were quickly ready to enter the cave in pursuit of their enemies. Inside they found a few kobolds waiting for them, but they quickly retreated at the sight of the party. Sredni ventured forward, flaming glaive held high, and was quickly attacked by a trio of kobolds. The others came to his assistance, and they party soon found that they were fighting several more kobolds, kobolds that were prepared for them. The heroes managed to fight the first wave off with reasonable efficacy, but another armored kobold and a shaman soon joined the fight. The armored kobold attacked Shava, who deftly maneuvered around him, while the shaman breathed a gout of flame all over Chance and Kraygin and sent balls of fire after them, as well. Before too long, the party was surrounded by kobolds on all sides, and everyone was badly wounded. Sredni fell to a kobold's spear and was brought back by the Chance's healing magic, only to fall again. Then, with an ear-splitting scream, Irontooth appeared.
The battle-crazed goblin rushed out and attacked Chance and Kraygin with furious swings of his battle axe, spittle flying from his fangs. Chance shouted a battle cry and struck a mighty blow, heartening his allies and allowing Sredni to once more join the battle. Meanwhile, Shava traded projectiles with the slinger and Kraygin struggled to fight off a skirmisher at his back, though he managed to land several solid blows on the ravening Irontooth. The situation looked grim; Irontooth was still raging with mad power, while his few remaining kobolds were harrying the party with deadly efficiency. Siezing the moment, Sredni stepped forward, rallying his allies and delivering a ringing blow to Irontooth, his glaive bursting into bright flame at the moment of contact. Irontooth recoiled, taking a few predatory swings at Chance, but the deciding blow had been struck; the tenacious flames from Sredni's glaive burned away Irontooth's resolve, and he called out, "Kalarel and Lord Orcus, prepare my way!" just before Sredni severed his head from his shoulders. The remaining kobolds either fled or died quickly.
In the wake of the battle, the heroes searched the fallen and found a silver key and a note on Irontooth's corpse. The note read,
The Wardens that you warned me of have been dealt with; however, my spies in Winterhaven suggest we keep an eye out for more visitors to the area.It probably does not matter; in just a few more days, I’ll completely open the rift.Then Winterhaven’s people will serve as food for all those Lord Orcus sends to do my bidding.
It was signed 'Kalarel'. Wondering who Kalarel was, the heroes continued to search the cave and found a small chest, unlocked by the silver key. Inside was Irontooth's treasure: some coins and gems, a potion, and a suit of mail. Victorious but badly wounded, the heroes decided to spend the night in the cave, resting up before the trip back to Winterhaven.