When Nidud reached his Palace the Queen and Banvilda, their daughter, came forth to meet him, and told him that the great hall was already full of guests, expecting the wonders he had brought. The King said little about his adventures, but went into the armoury to put on his armour in order to appear before his nobles. Piece by piece he fastened it, but he found the helmet so heavy that he could hardly bear it on his head. However, he did not look properly dressed without it, so he had to wear it, though it felt as if a whole mountain was pressing on his forehead. Then, buckling on the sword which Wayland had forged, he entered the hall, and seated himself on the throne. The Earls were struck dumb by his splendour, and thought at first that it was the god Thor himself, till they looked under the helmet and saw the ugly little man with the pale cowardly face. So they turned their eyes gladly on the Queen and Princess, both tall and beautiful and glittering with jewels, though inwardly they were not much better than the King.

Wayland mocked by the Queen and Banvilda

A magnificent dinner made the nobles feel more at ease, and they begged the King to tell them what man there was in Sweden so skilled in smith's work. Now Nidud had drunk deeply of mead, and longed to revenge himself on Wayland, whom he held to have caused the loss of his army; so he gave the key of the tower to one of his Earls, and bade him take two men and bring forth Wayland, adding that if the next time he visited the tower he should find a grain of gold missing, they should pay for it with their lives.

The three men got a boat, and rowed towards the tower, but on the way one who, like the King, had drunk too much mead, fell into the sea and was drowned. The other two reached the tower in safety, and finding Wayland, blackened with dust, busy at his forge, bade him come just as he was to the boat. With his hands bound they led him before the King, and Eyvind the Earl bowed low and said, 'We have done your desire, Sir King, and must now hasten back to look for Gullorm, who fell into the sea.'

'Leave him where he is,' replied Nidud; 'if he is not drowned by now he will never drown at all, but in token of your obedience to my orders I will give you each these golden chains.'

The guests had not thought to see the man who had made such wonderful armour helpless and a cripple, and said so to the King. 'He was once handsome and stately enough,' answered Nidud, 'but I have bowed his stubborn head.' And the Queen and her daughter joined in saying, 'The maidens of Finland will hardly fancy a lover who cannot stand upright.' But Wayland stood as if he heard nothing till the King's son snatched a bone from the table and threw it at his head. Then his patience gave way, and, seizing the bone, he beat Nidud about the head with it till the straps of the helmet gave way and the helmet itself fell off. The guests all took his side, and said that, though a cripple, he was braver than many men whose legs were straight, and begged the King to allow him to go back to his prison without being teased further. But the King cried that Wayland had done mischief enough, and must now be punished, and told them the story of his visit to the mountain and the loss of his followers. 'It would be a small punishment to put him to death,' he said, 'for to so wretched a cripple death would be welcome. He may use the gold that is left, but henceforth he shall only have one eye to work with,' and the Princess came forward and carried out the cruel sentence herself. And Wayland bore it all, saying nothing, but praying the gods to grant him vengeance.

One night Wayland sat filled with grief and despair at his window, looking out over the sea, when he caught sight of two red lights, bobbing in his direction. He watched them curiously till they vanished beneath the tower; and soon the key of the outer door turned, and two men, whom he knew to be the King's sons, Gram and Skule, talked softly together. He kept very still, so that they might think he was asleep, and he heard Skule say: 'Let us first get the golden key from him, and when we have taken from the chest as much as we can carry we will put him to death, lest he should betray us to our father.' Then Wayland took a large sword which lay by his side and hid it behind his seat, and he had scarcely done so when the princes entered the prison. 'Good greeting to you,' said Gram. 'Nidud our father has gone a journey into the country, and as he is so greedy of wealth that he will give us none, we have come here to get it for ourselves. Hand us the key and swear not to tell our father, or you shall die.'