A young man adopted by a renowned swordsmith, discovers that his real father was killed by a powerful bandit called Lung. Leaving to seek revenge, he runs foul of a group of vicious desert scum, losing his right arm in the process. After being nursed back to health, he eventually learns to compensate for his loss and returns to confront the man who murdered his father.
Two inventors encounter a friendly little ghost, and stumble onto a plot to capture the ghost's uncle who was responsible for his untimely death. However, the inventors are warned by a spiritual master that humans and ghosts cannot co-exist in the same room at the same time. Doing so would cause a drainage of humans' life force.