Martine, Florimel, Quan Li, Sweet William, and T4b have been enjoying the flying world, Aerodromia, but things get uncomfortable when a young girl from the tribe is kidnapped. Martine and the rest don't know it, but the girl has been stolen, terrorized, and murdered by Dread, still pretending to be one of Martine's four companions. The people of Aerodromia blame the newcomers for the disappearance, and dump them all into a labyrinth of caverns they call the Place of the Lost, where they find themselves surrounded by mysterious, ghostly presences which Martine, with her heightened nonvisual senses, finds particularly upsetting. The phantoms speak in unison, telling of the "One who is Other," and how he has deserted them instead of taking them across the "White Ocean," as promised. The voices also identify the real names of all Martine's company. The group is fascinated and frightened, and only belatedly realizes that Sweet William has disappeared—evidently to protect the guilty secret of his true identity. Something large and strange—the Other—abruptly enters the darkened Place of the Lost, and Martine and the others flee the horrifying presence. Martine searches desperately for one of the gateways that will allow them to leave the simulation before either the Other or the renegade Sweet William catches them.

At the same time, Orlando and Fredericks discover that the Egyptian simulation is not a straightforward historical recreation, but a mythical version. They meet a wolf-headed god named Upaut, who tells them how he and the whole simworld have been mistreated by the chief god, Osiris. Unfortunately, Upaut is not a very bright or stable god, and he interprets Orlando mumbling in his sleep—the result of a dream-conversation Orlando is having with his software agent, Beezle Bug, who can only reach him from the real world when he dreams—as a divine directive for him to try to overthrow Osiris. Upaut steals their sword and boat, leaving Orlando and Fredericks stranded in the desert.