OK, so, Sam Gamjee sends the party of two Rangers, one Fighter and one Illusionist on a mission to recover "Frodo's Treasure which was stolen from Bag End.
They followed the trail of clues to a hobbit thief in Bree named Tad Longfoot. Tad sold the treasure to a human who then took it to "The mad Dwarf" who is setting up shop underneath the ruins of Carn Dum.
When the party catches up to Tad, he gets away by lying to a rough but naive Ranger who literally sat on the hobbit to catch him. The hobbit ran off only to come back in the night to try to steal the belongings of the party in the Prancing Pony.
In the commotion in the dark, Tad gets away again after getting in some lucky shots on the sleepy and disoriented PC's. Though he was unable to snag any of their belongings.
The party heads out soon afterward going north on the Great Road, AKA the "Green Road" following hints that the human took the treasure north toward Farnast, now abandoned.
While camping in Farnast, the trail goes cold and the party camps out pondering what to do. Again, in the cover of night, a small hobbit thief is caught cutting the back of a tent open to steal the nearest things. Yes, Tad followed them. Not wanting to leave him to follow them yet again, yet unwilling to kill him in cold blood, they tie Tad up and leave him in an abandoned house.
A party of unhappy dawrves comes through Farnast from the East and let it be known that the Mad Dwarf truly is mad if he thinks they will continue to work for nothing under his demented leadership.
Taking the hint and directions, the party heads toward Carn Dum in the Mountains. Sadly, along the way, the party is attacked by a pack of wolves and the Illusionist is eventually killed and eaten. The rest of the party divvies up his stuff and moves toward their goal.
As the group finally arrives after days of travel, they are spotted by a party of dwarven fighters and surrounded and captured. The dwarves take the PC' s to see the mad Dwarf himself who accuses them of being thieves looking for his treasure.
The party is held captive in a storage area of the cavern that Damli, son of Gamen, now inhabits below the ruins of Carn Dum. Damli is preparing oto have the PC's sold at the slave market in the next few days. Meanwhile, another unhappy dwarf looking to get away from Damli offers to aid the team in their escape if they promise to take him with them.
Over the next day, they conspire to sneak out of a rear passage that their new friend has been clearing and during the night he releases them and they follow him to the escape path which leads them through the "treasure room". The group has the foresight to search for and find the treasure of Frodo and take it with them on their way out, leaving the vast majority of the treasure behind. Their main concern is to escape. On their way out, they are confronted by Damli himself and his personal guards. in the scuffle that ensues, Damli and his men are killed and the escape is made hastily.
Once outside, a party of dwarf guards finds the escapees and attacks them with prejudice. of the foursome, two are killed and two are near dead, the dwarves leave the remains for the wolves.
The gods took pity on this sad little party (playtesting this adventure as they were) and sent a group of Clerics traveling on a pilgrimage nearby. The clerics were able to ressurect and heal the party members at a very high cost. The group of clerics also manged to kill or chase off the remainder of the Mad Dwarf's men. When the PCs "came to", they went immediately to check the treasure room after seeing the dwarf bodies all around and the treasure had been mostly taken by the Clerics as payment for their services.
They still had the treasure of Frodo they were sent to find and managed to get safely back to Hobbiton to return it to Sam who rewarded them with 50 GP each.
Lessons learned? Never under-estimate a dwarf. Never trust a hobbit thief and most of all, don't tell the clerics who resurrect you about the treasure chamber.