Searching for a lost gold mine in Melatonin province, Salmoneus (Robert Trebor) comes upon an abandoned temple in which he finds a pile of gold bullion. But as he steps into a dark passageway, he falls down an unseen shaft and drops from sight. Several weeks later, Iolaus (Michael Hurst) and Moria (Fiona Mogridge), a feisty young reporter-in-training, seek shelter in that same temple while searching for Iolaus' missing cousin Regina (Amber Sainsbury). Inside they are ambushed by four scruffy-looking bandits, demanding gold. Iolaus, with the help of the quick-thinking Moria, soon manages to drive them off. Weary from their ordeal, the two hungry travelers are delighted to find large sacks of food and casks of wine in the temple, and sit down to enjoy a meal. Later that night, Moria shakes Iolaus awake to show him that all the remaining food has been removed from the temple and a small pile of gold bullion has appeared. When Iolaus steps into a dark passageway to take a closer look at the gold, he disappears down the same shaft which claimed Salmoneus weeks before. Moments later, Moria follows.
When Iolaus and Moria hit the bottom of the shaft, they find themselves in an underground city, bathed in eerie golden light. Iolaus is astonished to see a benevolent-looking Salmoneus approach with a welcoming committee, and is mystified when Salmoneus fails to recognize him. Spouting the words "peace and love" at every opportunity, Salmoneus proceeds to give him and Moria a grand tour of what appears to be a utopian community. The inhabitants, who mine gold which they trade with the outside world for food, seem totally content. Kamaros (Matthew Chamberlain), their ruler, pretends to have their best interests at heart, but Iolaus and Moria soon find out that he is a master at mind control, who has manipulated his subjects with opiate-laced food. Shrouded in false spirituality, Kamaros has even managed to convince his people that Lorel (Hannah Malloch), a ten-year-old girl, reigns as supreme god.
As Iolaus and Moria set about trying to learn all they can about the commune, they run into Iolaus' cousin Regina. Kamaros' brainwashing techniques and drugs have erased her memory and Iolaus is stunned when she doesn't remember him. Heading off with Salmoneus for a tour of the gold mines, Iolaus tries to break through his companion's defenses, but is unsuccessful. He urges him, as well as others in the community including Regina, to stop eating for a while to avoid being drugged, promising they will regain their memories if they do so. Meanwhile, Moria runs into Lorel's beautiful but distraught 20-year-old sister Aurora (Marama Jackson), who confesses that she is desperate to save her little sister from the clutches of Kamaros. She explains that her family was from a neighboring village which provided food to the commune in exchange for gold, and that she was tricked by the cult leader's enormous charisma. Fortunately, while pretending to play along, she was able to resist being programmed and drugged.
When Iolaus returns from his tour, Moria introduces him to Aurora and he soon sets a plan in motion to rescue Lorel and the rest of Kamaros' followers. Stealing into Lorel's room, he finds the sedated little girl bathed in an unearthly light. But when he attempts to escape with her, he is stopped by Kamaros, who shoots him with a poisoned dart. Gasping for breath, he is dragged to the madman's "reprogramming room" to be "re-educated" through drugs, hypnosis, sleep deprivation and other assorted tortures. When Iolaus emerges, he speaks as if he's been totally reprogrammed, but he has actually resisted being brainwashed through his knowledge of meditation. The truth surfaces when Kamaros captures Moria and spirits her off to be reprogrammed, whereupon Iolaus becomes his old self in a spectacular fight with the madman and his guards. Salmoneus, who is back in his right mind having fasted for a while, joins in the fray, hurling heavy gold bars at the heads of Iolaus' assailants. When Iolaus grabs one of Kamaros' swords, he recognizes the emblem on its handle and realizes that Kamaros is none other than Karkis, the murdering Butcher of Thessaly. As Salmoneus and the ladies leave to spread the truth about Kamaros throughout the commune, Karkis reveals that he has the "Lost City" rigged so that it will self-destruct and crumble at his command. Only he knows the secret escape route. In a daring last-minute maneuver, Iolaus manages to kill Karkis and save the underground commune dwellers from a massive cave-in and years of continued oppression.
Starring: Kevin Sorbo (Hercules), Michael Hurst (Iolaus)
Guest Starring: Robert Trebor (Salmoneus), Fiona Mogridge (Moira), Matthew Chamberlain (Kamaros/Karkis), Marama Jackson (Aurora), Amber Sainsbury (Regina), Hannah Malloch (Lorel), Andrew Kovacevich (Bystander), Jeremy Curry (Assistant)
Teleplay by Robert Bielak
Story by Robert Bielak & Liz Friedman
Directed by Charlie Haskell