When Adam and Hendrick go to investigate Dai's death, the body is gone. Matt uses Sandra's scarf to watch psychically what happens to Margaret and Sandra when they go to Hendrick's place for dinner. Matt ""sees"" Hendrick perform a ceremony where the Smythes are transformed into ""Happy Ones.""

The transformed Smythes join the other villagers who have encircled the manor house, but later back at the cottage they deny that anything has happened to them. The next day, Adam decides that he and Matt are leaving the village. However, as they drive out of the village, they are stopped by the stones, just as the Lyles had been. They wake up in Hendrick's house and are prevented from leaving by the villagers who are ringing the house again for the next transformation ceremony.

Speculating that the black hole is involved in the transformation process, Matt and Adam sabotage Hendrick's clocks so that he will misjudge the position of the black hole during the tranfromation ceremony. However, believing that the transformation has been successful, he sends Matt and Adam to join the other villagers. Adam touches Margaret's hand, breaking the spell over the villagers. A beam of light changes Hendrick into an ancient priest and some of the villagers into stone. Matt and Adam escape to The Sanctuary, where they spend the night. The next morning, they find Dai and the other villagers alive and well, and leave the village.