Stuff to look out for in this section: Spell Stone, Minion Stone, Brown minion gate, gnome side mission
Walk into the cave. You will notice that Borius (Nordberg’s town mayor) has taken the Spell Stone. This is an item you need in order to build your Tower. Not too far away is a “possession stone” which is inactive at this point. This will allow you to take possession of one of your minions so you can walk around into smaller areas that you normally cannot reach and a brown minion portal. Before you can take the stone, you need to take out some gnomes. You will now have a new side mission to kill off 1000 gnomes. However, will not be able to complete this during this part of the game.
Nearby is the Spell Stone, but you will need a portal so you can take it into the Netherworld. Look out for a wooden bridge. Have your minions carry the Spell Stone and follow you. You are officially in the outskirts of Nordberg and you will soon see the portal where you transport your spell stone. Put it in. A new quest is now triggered that will ask you to subdue and kill some local peasants. First, subdue 3 peasants. With your Xbox 360 controller, target them with LT. Make sure you are close to them and use the X button. Press it until the peasant falls to their knees. If they run, you can target the peasant and have your minions hold them by directing them to your target. After you get 3 subdued, you need to kill 3 of them. This is the part in Overlord 2 that lets you know you have two paths you can take, chaos or tyranny.
Now, backtrack across the bridge again and continue to go north. You will find an area that has a special minion stone and some gnome dwellings. Kill off any gnomes and grab the item (which will increase your minion number to twenty). Carry it back to the portal. Then put your minions back into their own portal (LT the portal, then RT the minions in). Then go through the netherworld portal to leave this area.