As Jack sits on the porch reading, Annie looks toward Frog Creek woods and sees a rabbit. She believes it's a sign that the enchantress Morgan le Fay has returned. So the children follow the rabbit into the woods and find Morgan in the magic tree house. The enchantress has another riddle for the children to solve. After giving them a book on the Wild West and a scroll, she instructs them to read the scroll when they arrive.
The tree house lands just outside Rattlesnake Flats, a ghost town from the late 1800s. Jack and Annie read the riddle in the scroll, which prompts them to look for a voice calling out of the blue. At the abandoned general store in town, they don cowboy boots and hats. A sound draws them to the hotel where they discover a piano playing itself. Unnerved, the two leave the hotel only to hear horses approaching. Jack and Annie hide in two empty barrels and watch as a group of horse thieves rides into town. The children listen to the men talk about the unruly mustang they stole and her colt, which they left behind because it was too slow. The men ride out of town, planning to spend the night nearby.