We find out Valgaav's plan:

1- Take the Sword of Light from Gourry. 2- Avenging his master Gaav, by killing Lina Inverse. 3- Looking for another ""Sword of Light"" item.

After showing off his double sided, Sword of Light and sampling it's power against Gourry, their swords cancel each other out. Valgaav's major boss comes (named Alymace) tells him to retreat. Lina tries to attack him, but Xellos shows up, saying that Alymace cannot be hurt by magic of anykind.

It looks like Lina and gang has a big war coming up...