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In the depths of the Moonwood, legends claim that a ruined, overgrown elven castle stands. Its name is forgotten, but great magic is believed to sleep in its gloomy chambers. The castleĆ­s vine-choked, needle-thin spires are lost among the trees, and it bears some sort of cloaking magic deterring both monster intrusions and magical detection alike. There is also a hill where drow ladies come on moonlit nights to dance in a great ring. This seems to be done in worship to Eilistraee, a goddess of good aims. It's dangerous to approach the women, the guides say. They hurl potent spells at intruders, chasing those they see for long distances through the forest.

The forest is also said to have confusing magics within it, that cause even the most competent of rangers and druids to lose their way, and despite being criss-crossed by ancient elven trails, many a traveller has become lost for weeks within the dark depths of the forest.

There are also rumours of a band of werewolves operating in the Moonwood - terrorising the village of Quaervarr - the group call themselves the Band of the Black Blood - and are supposedly led by an ex-werewolf-hunter, who infected with lyanthropy himself, essentially turned into his former prey.