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YIP PING declares war on PAK LUNG and CHI TSING, thinking that she is well-trained of the werewolf skills. To her surprise, she is totally powerless in confronting the two. YIP PING finds out from LING SIU that what she has from LING all this time is werewolf poison which is detrimental to her health. She is even imprisoned for her attempt to revolt against him. YAP LONG has been instructed by YIP PING to steal the Leo-sword. He meets CHIN FUNG and HEUNG YEE and is overpowered by the two. LING SIU leads a hunt against the Haunted Valley spreading the rumor that people there has got hold of the Leo-sword. The Valley people are fully prepared. As everyone arrives, they declare LING SIU the werewolf.
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