The local people peep out from their houses, and when they see the pilgrims, they look shocked and close their doors immediately. At one point, two children walk past, and when the pilgrims start talking to them, their parents run out, panicking, and take them indoors.
They find an empty house, and they settle inside and have something to eat (except Tripitaka - maybe he's upset that they've broken into this house and stolen other people's food).
They go to sleep, and a gang of villagers surround the house with flaming torches and set the building alight. After they escape, the villagers are friendly to them - don't know why.
Pigsy falls for a beautiful woman (appears like she might be a school teacher) who's leading a group of children. She turns out to be a demon. It seems that perhaps she's the "fraction demon", who leads children away from the village (disguised as a teacher), and kills them. She leaves her "mark" on the villagers' houses by leaving a piece of paper with fraction sums written on it.
Monkey doesn't appear much in this episode - he spends most of it relaxing in a bath, recovering from severe burns from the fire.