When one of Presto's spells is sabotaged by the Lost Tower of the Celestial Knights he and Eric find themselves accidentally teleported into a misty woodland with a muddy river running through it.
The woodland is home to a sheet phantom that smothers Eric and metamorphoses him into a comical nerd plus a group of banshees that snatch Presto's glasses before cruelly mocking the duo.
This is the tower's bidding as Eric being an object of ridicule and Presto being blind are their biggest fears. The boys could have been teleported outside the tower to somewhere on the Realm where their fears would happen but another explanation could be that they were teleported somewhere else inside the dimensionally massive tower and the whole woodland, banshees and sheet phantom was a conjured scenario tailored to exploit their fears.
The woodland now has a United States Navy aircraft carrier in it that Presto managed to conjure.