The Last Illusion

The children come to a cursed village in the middle of the Swamp of Darkness.  Venger is using a wild talent illusionist called Varla to keep the village in a permanent state of decay.  The children meet Varla's parents and have their weapons stolen by Venger, who uses Varla's powers to trick them and bring the village against them.  The children set out to regain their weapons and rescue Varla from Venger's fortress.