On their way to Ngor Mei, YING NAM is trapped by PUN PIN. He releases SHEK SAN only. PUN PIN tells SHEK SAN that he can shirk all evil minds unless he takes a wash in Blood Waterfall of Tung Yeh Island. As SHEK SAN does not want to be an evil-minded demon, he determines to follow PUN PIN1s suggestion. In fact PUN PIN lies to him. If SHEK SAN does what he is told, he will transfigure into the Blood Demon immediately. If then he takes his essence, PUN PIN will become the strongest demon. MO SAP discovers that PUN PIN has destroyed HIN YUEN. He wants to catch him but in vain. Master YUEN YUEN scolds YING NAM as she cannot fulfil her duty. He asks her to stay and not to interrupt SHEK SAN's journey to Tung Yeh Island.