Strider takes them to a big hill called Weathertop. He goes away for no apparent reason and leaves them practically defenceless when the evil wraiths turn up to kill them. The leader wraith stabs Frodo because he wouldn't give him the evil Ring, then Strider conveniently turns up again and kicks their asses so they run away.
Frodo looks like he's going to die because of his wound, but a she-elf called Arwen appears to save the day (Glorfindel was washing his hair). She takes Frodo on her huge shirehorse Asfaloth, and speeds away. She gets chased by the evil wraiths, the fifth wraith George riding his evil red-eyed rhinocerous.
Arwen got across the river into Rivendell and then the wraiths got unfortunately drowned by the good pixie-magic of the elves.
Meanwhile, finally getting back to the plight of Gandalf, he had been imprisoned on top of Isengard by the now-evil Saruman. His beard was getting wet and tangly in the rain, so he asked a moth to go and get help in the form of a giant helicopter called Gwaihir-6000. He hopped on board and flew away. Saruman was pissed off.
Gandalf flew off to Rivendell, where Frodo was recovering nicely from his near-death experience. An elf with scary but surprisingly un-evil eyebrows, little braids and a blue suit called Elrond made a council. It was called the Council of Elrond. There a lot of people from different races met and they finally decided that they should destroy the ring, which is what Gandalf already said anyway.