Cue flashback to some weeks before when the inn Lina was staying at and had all her magical items stored in goes up in flames. Atop the building, Naga laughs and announces herself Lina's ultimate rival, to which Lina attempts to pretend to be someone else to avoid making an aquantance with someone who's dressed 100 years out of date. However, with one simple comment on her chest size from Naga, Lina's all too happy to get into a fight and tells Naga to come down. Only problem is, Naga didn't think things through far enough to figure out HOW to get down from the roof of the burning building.
A day or two later, a bandaged Naga confronts Lina along the trail and challenges her to a fight. Humorous fight scene follows with the highlights including Naga jabbing herself in the cheeks with her own shoulder guards while trying to cast her spells and crushing herself with the tree she blasted down. While under the tree, Naga tells Lina that she'll "let her off easy this time", to which Lina blasts her for her idiocy and puts her out of her mind.
Fast forward to the present where the tavern has burned to the ground and Naga is once again bandaged head to toe because she couldn't figure out how to get off the burning building after setting fire to it. The locals demand some form of "compensation" for the only tavern in town being burned to the ground and force Naga and Lina to go to the haunted labyrinth and defeat the monster. Lina tries getting out of it, but gets forced because her wallet got burned along with the tavern and now she can't pay for the meal she was eating.
So the two sorceresses head to the labyrinth which Naga insists must hold some valuable treasure inside. They wander for a while, with Lina marking their path via chalk drawn arrows when they come upon a sealed door with voices behind it. After Naga jabs herself in the cheeks again trying to blast the door open, Lina finds the latch and opens the door properly. Unfortunately, behind the door is a hord of zombies and so the two girls run away screaming.
Now lost in the maze, they find themselves in a large alter room where after they battle off the ghosts, a voice speaks to them. Lina realizes it's the monster and that the monster must be a vampire. She further theorises that they've been tricked into coming as sacrifices so that the local villagers don't have to give up their own friends and family. The vampire confirms this, and admits the zombies were the sacrifices that never made it this far into his labyrinth. He then lets them into the final chamber
Lina asks why the vampire still sleeps in a coffin this far underground, and belittles the dramatic effects, causing the vampire to grow angry and attack them. After a few magic blasts back and forth (none of which have any effect on the vampire) Naga challenges him to a swordfight. He accepts, only at the last second it turns out Naga's sword is stuck in it's sheath and she can't pull it out. Lina takes advantage of the distraction to blast the vampire with more powerful magic. However, this does little more than make the vampire mad, causing him to revert to his true form. After an impressive looking transformation sequence, the vampire turns into a little yellow bat that flutters around Lina's head until she finishes the battle with an anti-clamatic slipper attack. (For once the slipper is blue rather than the pink bunny ones that become well known in the rest of the series.)
Afterwards, Lina and Naga raid the place for treasure and as they're finishing, Naga brings up the trouble of getting out again. Lina says it's simple: they just find one of her arrows back and backtrack to the entrance. Naga laughs and says she erased all the arrows cause it's not good to graffiti in ruins. Lina's pissed, and says they're stuck in here now with no hope of escape and Naga tells her that's where she's wrong: if you want out, just make your own exit going strait up! Thus Naga blasts the ceiling and gets burried under a bunch of rubble. She begs Lina to help her out from under it all, but Lina tells her it's her own fault and thus she can just stay there and rot. Lina leaves, and the episode ends. Roll credits.