Dany has been trying to get Khal Drogo to conquer the Seven Kingdoms, but he's not interested because they'd have to cross a huge sea. The Rock would sink to the bottom of the ocean and horses can't drink seawater. Dany goes to the Western Market, where someone tries to assassinate her with poisoned wine. Jorah saves her, but only because he's operating on threat level midnight -- he knows an attempt is coming. Afterward, Dany tries to make a dragon egg omelette by cooking them in the fire, but they don't hatch. However, the assassination attempt pisses off Khal Drogo enough for him to declare war on the Seven Kingdoms. Watch out Westeros, the Dothraki are coming!
Catelyn arrives at Robb's camp. She quickly realizes that her son is leading this gigantic army to war, and he's just this fifteen-year-old who is brave but extremely inexperienced. She then tells him that if he loses, there's no hope for any of the Starks -- his father and sisters would forever be captives and they would spend the rest of their days in a Lannister dungeon. But hey, no pressure. The rest of the chapter is spent discussing military tactics and appointing commanders. I only recognize the Greatjon and Karstarks, the rest of the northern bannermen are unfamiliar to me. Robb doesn't seem very confident in his decisions, and that doesn't bode well for his chances, no matter how badass his army may be.
Tyrion finally returns with his mountain clansmen in tow. Tyrion discusses military tactics with his father Tywin and his uncle Kevan. After reading Martin's description of Tywin, I can't shake the picture of a bearded Captain Picard / Professor X. The guy is never phased, and seems to be completely in control of any situation, even when the clansmen busted in on their meeting. Tywin speaks with such supreme confidence, its easy to feel bad for the Starks. It seems like Robb is in for a rude awakening now that he's playing with the big boys.