Miss Hawk walks into the Red Bedroom and introduces herself to Edward and Tracy. She's been asked by Lord Dark to look at the books. Edward tells her all about the man in the picture appearing as the Friendly Ghost and telling them about the Tall Knight and the treasure. They all go to the old library.
Following the ghost's instructions, Edward and Tracy find an old book. But at four pages from the back and four lines down, they find there are letters missing.
Edward says he's read it and goes off on his own, leaving Tracy and Miss Hawk. Tracy tries to make sense of the passage in the book and eventually makes out "Go where old wheels went round."
Meanwhile, Lord Dark is working at a potter's wheel, and Edward asks him what old wheels there are in the house. Then he runs to the old well...