We decided to pursue investigation of why there are gnolls in the forest. We consulted with someone in the village who seemed to know what he was about and discovered he was already aware of gnolls in the forest. He confirmed that the gnolls found by Brandis were the same group he had been hunting.
We left for the spot where Brandis had witnessed gnolls and goblins battling and found signs of an even more recent battle. Tracking from there, we encountered a group of 5 gnolls at a campfire, cooking a goblin.
We ambushed the gnolls using the time-honored tradition of having the sneaky folks move around to the far side of the camp and trying to engage with the non-sneaky folk. Unfortunately, the surprise round did not do enough damage and we were all engaged in short order. Despite this, we took only a little damage before defeating them.
We looted the corpses, but other than “nothing that interesting”, I’m not sure what we actually found. Oh, there was a superior lock and a set of leather armor. But other stuff, too….