The village of Clay Bottom lies, undisturbed and peaceful, at the base of Clay Volcano. A piece of green cloth is found and taken to Billy, the wizard, for examination. He sets out to find the meaning of the green piece of cloth. He finds that the village of Clay Bottom, and its meagre resources, have come to the attention of a marauding army bent on expanding their empire. It falls to Billy, and his pet dragon, Custard, to solve the mystery and save the village of Clay Bottom from conquest.
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