The Old Grist Mill.
Wirt and Greg, along with a frog that Greg attempts to name, are lost in a forest and are met by a talking bluebird and later a woodsman. They are informed by the old Woodsman that they are lost in the Unknown and warns them of "The Beast". Taking them to his oil mill, Wirt and Greg decide to stay for the night but problems arise when Greg leaves a trail of candy that a wolf, which they mistakenly believe to be the Beast, follows them. Greg knocks out the Woodsman, the two brothers run from the wolf, resulting in the destruction of the mill and the wolf being squeezed and returned to its original form, a dog. The Woodsman, angry at their actions but still forgiving, tells them to follow the path but warns them to beware the Beast, as he and the two brothers go their different ways. The brothers keep on rambling as they walk through the woods as a bluebird watches them in the trees.