|Episode 5 - Escudo, the Legendary Ore|
Alcyone begs Zagato for another chance to kill the Magic Knights, saying she has a plan this time.
The Knights reach a lake and think it's the Spring of Eterna, but Mokona says this isn't it. They see a boat and decide to check it out anyway, and then they get attacked by a water monster. Umi manages to defeat it with her Water Dragon attack, and then the rain that results from the monster's destruction pours down on them and makes them gain a mysterious glow. Alcyone is seen watching from a distance, looking like this is all part of her plan.
Then they get to the Spring of Eterna for real, and from where they're standing it looks like just a blue line floating in the air. Mokona leads Hikaru up to a high vantage point and she sees that it's actually a 2-dimensional portal spring, and Mokona shows that you can dive into it.
Then as they're descending into the spring, Alcyone shows up to watch her plan get carried out.
Everything is as planned. Magic Knights... This will be your graves.
Everyone gets separated and they each end up in some abstract world where they get attacked by their loved ones. Hikaru gets attacked by her dog, Umi gets attacked by her parents, and Fuu gets attacked by... herself. Fuu's situation is the weirdest because she receives all the damage that she does to her doppleganger. Then suddenly they get contacted by Princess Emeraude, who gives them a hint on how to defeat these illusions.
Magic Knights, do not let sorrow rule your hearts.
Hikaru realizes that her friend would never hurt her, Umi realizes that her parents would never hurt her, and Fuu realizes that she can heal herself with magic after taking out her doppleganger. Then they learn new attacks.
It turns out that these illusions were the doing of the legendary ore Escudo, to test their worthiness of obtaining the ore. That's when Alcyone shows up to attack the magic knights and steal the Escudo from them. The water monster from earlier had poisoned them and that poison is just now starting to take effect. By timing the poison attack like this, she was able to have the Magic Knights find the Escudo for her as well.
Alcyone uses her ice attack to finish them off, but then they all stand up and refuse to let that defeat them. Then the Escudo gets absorbed into the Knights' hand ornaments and their armor evolves and changes appearance. I suppose these armor upgrades must also have poison resistance, because they're now all perfectly okay and they easily defeat Alcyone with their new magic attacks.
Alcyone goes back to Zagato and tries to beg him for another chance, but he doesn't forgive her this time and blasts her away with magic. Zagato concludes that it was a mistake to take these Magic Knights so lightly, and then a new minion, a midget kid named Ascot volunteers to go and fight them next.