At long last, King Lehowy of Peregham hatched a plan with his First Mage, Anwyk Arisses. In secret, Anwyk retreated to the depths of his peculiar abode for seven days, during which time he concentrated his power on forging a powerful talisman with which the King could crush Stiltshire once and for all. Strict orders from the King kept anyone from disturbing him. He neither ate nor drank nor slept but rather used a small residue of his magical power to keep himself alive.

When, at last, Anwyk Arisses emerged from his seclusion, he was worn, haggard, gray, and thin, a shadow of his former self. He ascended the steps to the throne room precariously, amongst hushed whispers. Presenting the product of his efforts to the King, he laid it at his feet with a humble bow and backed away.

Distraught as the King was that the forging had taken so much life out of his friend and First Mage, he was nevertheless pleased with the results. He took the Diadem from the floor and placed it upon his head. The aura of its power and majesty shone visibly.

The fates, however, were not to let it be. Before King Lehowy could wield the Diadem in battle, Stiltshire spies had already learned of the Diadem and at once began plans to foil the King's scheme. King Brewlry of Stiltshire ordered his own First Mage, Murkon, to lead four of his most skilled agents on a two-fold mission: one, to steal the Diadem; two, to assassinate Anwyk Arisses so that he would not be able to forge it anew. (Unbeknowst to them, it was highly unlikely that Anwyk Arisses would have had enough stamina left to duplicate his efforts.) That very night, the agents of Stiltshire embarked on their mission and emerged victoriously, on both counts. However, en route back to Stiltshire, the First Mage Murkon, weak of will and deluded by the awesome power of the Diadem, murdered all of his comrades save one named Ceratil who pleaded for his life and promised subservience. The foul deed done, Murkon and Ceratil made off with the Diadem in the night. Wielding the Diadem's power, the First Mage burrowed a complex labyrinth in the earth underneath Peregham and secluded himself in its depths. For added protection, he summoned mythical beasts from the netherworld to populate and guard it. He appointed Ceratil the leader of a band of mercenaries in charge of keeping all intruders locked out of the deeper regions of the labyrinth. Thereafter, Ceratil was known only as the Gatekeeper.

Both King Lehowy and King Brewlry were incensed at what had transpired, each blaming the other, vowing to crush each other in escalated warfare. In a desperate effort to save his beloved kingdom from ruin, King Lehowy called upon a small group of the bravest warriors the land had seen and asked them to attempt to penetrate Murkon's refuge and bring back the coveted Diadem.

The Diadem, alas, was Peregham's last hope.