A loner named Tracey Brown and her dog Towser venture into a garden where Tracey meets Lord Edward Dark, who agrees to help her look for Towser. Tracey's search leads her into Dark Towers where she meets Edward's father, Lord Dark. Tracey eventually finds Towser barking at a picture on the wall. The picture comes to life and cries out that the house is in danger, and that the girl (Tracey) will save the house, but Edward and his father do not hear the voice.

Tracey and Edward encounter two men, Benger and Bunce, and soon become suspicious of the two. When they follow Towser to the Red Bedroom, they meet the Friendly Ghost, who is the man in the picture that spoke.

The Friendly Ghost tells Tracey and Edward the legend of Dark Towers, of the Tall Knight, his treasure, and gives them this warning: "Beware of Two B's Buzzing Together. Beware of the Bird with the brown feather".

After the Friendly Ghost disappears, a woman named Miss Hawk walks into the Red Bedroom, and offers to help Tracey and Edward look for the treasure. Tracey and Edward find a clue which tells them to "Go where old wheels go round".

Following the clue, Tracey searches the Old Coach House where she discovers Benger and Bunce are crooks, and overhears their plans.