Session 2 continued
The Bridge
From the stone house, they are not quite sure what to do, and so they  simply continue on the path.  Eventually they arrive at a small bridge  crossing a river.  The forest on the other side of the bridge seems  fresh, green, and  healthy. Anett conveys to the others that in the natural world this  would be  unusual; however, she has heard stories that in the realm of the fey  their owned lands will reflect their personality, and so this likely  means they have crossed a boundary from one fey's rule into another.
Menolly checks under the bridge, but there is no troll - only something  glinting in the sun just out of reach.  Though tempted, they decide not  to leave the path to see what it is.  Just on the other side of the  bridge, two birch trees stretch up out of the ground - the druid, Anett,  looks at them curiously, as the other trees are all maples and oaks (as  far as she can tell).  
The Village
They cautiously travel over the bridge, and soon come to a small  village.  They debate about leaving the crocodile behind while they  enter, but decide that as mortals they are probably just as unusual.   And, indeed, the village folk are much more interested in them, peering  at them cautiously from the safety of their homes.  The faeries in the  village are of various sizes and colors, but are united in their  handsome looks and gentle bearing - although, indeed, they do not seem  very happy today. 
A gentleman (if you can call him so) approaches the party and introduces  himself as the leader of the village.  Evol introduces the party, and  the village leader comments that he has not seen mortals here for 1000  mortal years.  
He states that the destiny was made that the mortals that came would be  the ones to restore to them their prince and princess which had been  turned to stone by an evil witch just before the twilight came.  Their  mother, the queen, was able to change the spell so they were birch trees  instead, but she was not powerful enough to return them to their form.   For a spell like that, an object belonging to the witch would be  required.  
On questioning, they began to realize that the staff they had bartered  for was one that the witch had owned, when she was still alive.  They  were determined to try and change the trees back, but first they wanted  to find out why the village was sad.
Each mortal year, the elder said, because of an agreement with one of  their leaders which had since passed, one of their children must be  given to the rose-colored dragon in exchange for it's protection (from  itself as well as from any other thing).  The dragon was due in about  four hours.
One of the party asks, "Do you want to be free of the dragon?" 
"Oh yes, but if we ask to be released from the agreement, then he will  flatten the town.  And we must keep our side for him to keep his.  If  you help us in this, then I will be grateful, but I cannot give you  anything in return."
The party agrees that they cannot leave and let an innocent be hurt.   They ask many things about the dragon, and find that it carries off the  children, rather than eating them there, it's as big as four men put  together, and also it enjoys a good game of wits.
They position themselves around the girl,who has been tied to a stake,  and wait for the dragon.  The village people lock their doors and for a  while it is dark and silent.  The dragon banks in a circle and lands on  the other side of the fire from the girl.
(more to come from Session 2)
Note that the first post was updated with creature and setting information based on session.