- We see Frodo. He runs to greet Gandalf, who is riding a little buggy into town for Bilbo's birthday.
- They talk about Gandalf being a disturber of the peace and wonder what old Bilbo is up to.
- Then Gandalf makes it to Bag End (Bilbo's home) and is greeted warmly.
- Bilbo talks about his plans to go away and never return (fun stuff).
- He says that although he doesn't look old, he feels old. He wants to have a final adventure and settle down away from the shire.
- Gandalf is obviously suspicious.