Driven by the moon influence, Wolf kills some of the Peep's chickens. Virginia ties him up so he won't hurt anyone or anything else. Tony makes Virginia sign up for "The Best Sheep and Shepherdess" contest to win The Mirror. Virginia wins but Wolf is convicted for the murder of Sally Peep. Virginia decides not to go home just yet but to stay and help prove his innocence. Tony uncovers the truth about the Magic Wishing Well but in the lost time the mirror is gone again.

On the back of the broken mirror Tony and Virginia find an inscription "Manufactured by the Dwarves of Dragon Mountain" so they decide to go to there hoping to find another mirror that could bring them back home. In the mountain, they meet dwarves who inform them that three Traveling Mirrors were made. The only one left is in possession of the Evil Queen. Tony's bad luck causes him to break all the magic mirrors. The dwarves become angry and chase them so Virginia and Tony run to deeper into the mountain to escape.