Strange things began happening at the inn that Travis and Corey had no part in. When Tracy, the inn's waitress, went into the grove to see a ghost, she came back spooked crying that she sensed something evil all while Travis felt he was being watched.
Later that night, Corey confronts Travis about her room which is trashed and her clothes had been thrown out the window! Travis denies this though. Suddenly, Corey's bed begins to rock, her clothes fly out of the closet, and unseen voices laught and call themselves "the lovely bad ones."
Shaken, the kids run to one of the ghost hunters Eleanor Chester and explain it was a joke at first but now things the cannot explain are happening. Elenor tells them that their prank awakened "the bad ones" and they need to find a way to put them back to sleep.
"The bad ones" appear to the children in solid form and explain the atrocities they endured on the poor farm by Miss Ada and her brother. The boys: Ira, Seth, and Caleb tell the kids to find Miss Ada's diary where a record of everyone's name was kept so their names can be on their headstones. The kids also warn Travis and Corey that they have awakened Miss Ada.
At this point, Grandma is sick of all the ghost talk so she kicks out the psychics and blames Travis and Corey for the ruckus. "The bad ones" materialize for grandma and prove to her that they are real and she finally believes them.
In search of Miss Ada's ledger they find themselves in the grove but no book. Instead they encounter Miss Ada hanging from her noose. She tries to get Travis and Corey but is exorcised.