Last time you piloted the Grey Eel back toward the Puzzle Canal entrance. Caernak capsized the boat right away, but everyone was pretty well prepared and you got back on your way without too much delay.
A mob of fierce bloodbirds attacked you, swarming Groloday, Rup, and Tarranyr. Rup unleashed his new City Harmony spell, making 5 of them peaceful (2 were subdued and captured, sold for a good price later; the other 3 flew off in peace).
Meanwhile, one of them super-criticalled (also called a Whammo!) Groloday in the head, killing him beyond hope of resurrection. Ouch! You cruised back to Pavis and returned Groloday's body to his people, recovered, and headed back in.
You spoke to two gangs of outlaws hidden in the outer maze and got some info about neighbors and mapping. The third gang you met was an odd bunch of Esrolians (sorry, I misspoke, they are from Nochet in Esrolia, not Heortland!) who wield bizarre weapons left-handed and seem quite competent warriors, who worship some "Saint Orlanth". The other 3 didn't seem to speak much Tradetalk and are gruff warrior-types, but the leader Meskavio the Ribald is quite chatty and said that there is a red-eyed demon spreading madness in the deeper maze.
They thought that the river daughter was down one passage so you went that way, and eventually were attacked by berserk suicidal newtlings, who you slaughtered. You wandered around the canals a little more and weren't sure where the entrance to "pool #23" was, so that's roughly where we left off.