Nighttime on Skorzeny's boat. Eric is waiting in a shadowy corner with a loaded gun. Skorzeny arrives and Eric confronts him, then Skorzeny throws down a bloody sack of remains which are all that is left of Kelly. Eric fires at Skorzeny who goes down, but stands back up almost immediately and advances on Eric, laughing.
Suddenly Eric wakes up from the dream and realizes that he is still crouched inside the boat waiting. To keep himself awake, he begins to write in his diary about how he came to be staking out the boat.
Earlier that day, Eric got to these docks, following leads from various fishing villages. Having lost most of his supplies due to his transformations, he searched from boat to boat until he found a revolver. He then found a local gun shop and was able to have silver bullets made.
Hearing that Skorzeny had been spending time in a local bar, Eric goes there to look for information. Dropping his backpack by the door, he meets another captain named Birdie who tells him that Skorzeny always sits down at the end of the bar. Looking there, Eric can see a figure but can't make out who it is. Before he can make his way over, Birdie stops him to return his backpack. When Eric turns back around, the person at the end of the bar is gone.
Eric runs outside and catches sight of a figure disappearing around a corner. Following quickly, Eric winds up in an alley where a figure jumps him from behind. It isn't Skorzeny, but yet another captain named Mueller. Eric draws his gun to make him back down, and tells him that he mistook him for Skorzeny. Mueller tells Eric where Skorzeny's boat is docked. Eric then goes there to wait in ambush.
Rogan arrives and happens to stop in the gun store. The owner recognizes Eric's picture and remembers his request for silver bullets, but does not know where he is staying.
Night has fallen, and Skorzeny is approaching the boat. He stops, sensing that Eric is near. Inside, Eric has fallen asleep again. Mueller stops Skorzeny and berates him for bringing trouble to town. The two walk off arguing.
Eric is woken by a howling nearby. He looks down at his hand and sees that the pentagram is there. Deciding that he may not have much time, Eric leaves the boat to search the docks, hoping to find Skorzeny before the change takes him. Eric does not find Skorzeny, but he does find the body of Captain Mueller, impaled on an anchor or large hook. He then circles back to the boat, where he sees movement inside.
Eric races into the boat, and finds Birdie there waiting for him. Birdie had stolen Eric's wallet when handing him his backpack, and now knew Eric's real name from his driver's license. When he heard that Rogan was looking for Eric, he decided that he would try to get some of the reward. As they are talking, a friend of Birdie's jumps Eric from behind and covers him with a sack. As the sack goes over him, we can see that the pentagram on his hand has started bleeding.
Rogan has found the boat and is sneaking up to it slowly because he heard all the noise inside.
Eric, now fully transformed, bursts out of the burlap sack, and attacks his captors. Birdie's friend is hurled through the door and into Rogan, knocking him down. The werewolf runs over them and onto the docks. Rogan fires at him, but he dives into the water and escapes.
In the morning, the police are investigating the scene. Rogan apologizes to Skorzeny for the damages to his boat, and gives him a number to call about being reimbursed. Skorzeny asks him if he always uses silver bullets. When Rogan just looks at him in surprise, Skorzeny laughs and walks away.
Eric wakes up on the beach. Picks himself up and continues moving after Skorzeny.