We're in Mordor and can hear the screams of Gollum as he's being tortured. He says "Shire" and "Baggins." Dark cloaked horsemen ride forth from the gates.
Gandalf approaches Mordor and sees the fires stirring within.
He rides to an old library of sorts in the city of Minas Tirath (foreshadowing for the third movie) where he searches for information on the ring. He comes across a manuscript written by Isildur himself, describing markings appearing on the ring when it is heated.