Helped by Tit Chung Tong, Ay Tin Fook recover. Realizing his vicious deeds, Fook feels much guilty and decides to die with Fung Sor, but is killed by him. Seriously wounded, Sor escapes.
Learning from Liu Ho Yee that Chu Wan Pang lives at Sun and Moon Lake, Tong hurries there to save Shui Ling Kwong. After much difficulties, Tong arrives at the Lake. Pang offers to help Tong take his revenge but he is not to see Kwong again. Tong rejects. In order to see Kwong, Pang asks Tong to overcome a weird formation that he sets up.
Learning of Wan Yick's death and failing to acquire new martial arts, Wan Cheng drinks heavily. Cheng gets drunk and by accident falls into a dry well. He is forced to eat a thousand year fungus to ease his hunger.
Secretly hinted by Kwong, Tong overcomes the formation. Pang resorts to threatening him with the Blood Flag.