Your tout, Kylie Devilsworn, finds a portal for you that leads to Harkenwald, two days journey South West of Hammerfast.
The portal brings you to a temple of Corellon which is boarded up. Upon inspecting the temple, you find that a funeral had been in preparation at the time the temple was looted, desecrated, and boarded up.
You open the coffin and find the body of an elven warrior, Finguay of Harkenwood, prepared for burial in his armor. His body has been preserved by the Gentle Repose ritual. Mercaiden takes his bow, Dragon Slayer, and Hallabiri takes his hide leather Elven Battle Armor. You also find about 1000gp.
You leave the temple and explore the town. It appears to be under the control of The Red Hand.
Slaves of many races, including elves, humans, gnomes, tieflings, and orcs are hauling lumber through the town.
The only town gate not sealed is heavily guarded, and every wagon load of lumber and every person is being inspected before they can pass out of the gate.
You decide that Baaki will destroy one of the other gate portcullises, and you will escape that way. Upon leaving the town, Uinan announces that she wishes to return to Harkenwood to rejoin her people.