Sad but determined, Crazy Quilt swims to the shore so his companions can dry out. While drying out they meet Presto the Magician who is about as inept a magician as you can possibly find. Presto insists on giving them a demonstration of his magical powers and accidentally pulls Penelope out of his hat which does not make her happy in the least. When he grabbed her she was so startled that she dropped the star over an island called Obi. Naturally, the group wants to head to Obi so they begin looking for a boat but they find a treasure chest. Where there are treasure chests there are usually pirates and sure enough they are surrounded by pirates!