In his Austrian prison, King Richard has just had a horrible nightmare. He saw Ivanhoe defeated by Bois-Guilbert armed with a magical sword. Was it a premonition? It very well could have been! Because hundreds of miles away in the heart of Sherwood Forest, Rebecca has just overheard the Regent and Malvoisin talking with Seti, a well-known sorcerer. In his ramshackle hut, the old man tells his prestigious visitors the legend of Dana-Irae, a sword with magical powers that is said to be lying at the bottom of a murky pond in the midst of a strange, ghostly forest.