I think the dialogue could use some work. The way the characters talk to each other is unnatural. For example, "Come we must set off [while] we still have a chance", could sound more natural if it was something like, "We have to go while we still have a chance".
There is a fantasy element evident here which may have made you think that your characters need to speak in a very formal, old fashioned way. Luckily, we don't need to write fantasy this way any more. Compare dialogue in something like
A Wizard of Earthsea to the dialogue in
Nine Princes in Amber (interestingly, these books were published only 2 years apart). The dialogue in
Amber is far more natural than the stiff language of
Wizard.
Think of how the people around you talk when writing dialogue. If your main character's best friend is hatching a brilliant escape plan, it would probably sound like your best friend hatching a plan. A caution on that tip though if you're writing sci fi or fantasy; avoid using contemporary slang. If your characters are prone to using slang you'll have to develop your own.
I know we've mentioned this before, but I will bring it up again because in this case it actually had a negative impact on comprehension; please edit your samples. Bad grammar, poor word choice and misused punctuation get in the way of getting to the actual meat of the story. It'd be great to just work on setting or dialogue without worrying about proofreading. If you're not sure what to edit for check out this list for editing essays which is easily adapted to short stories:
http://grammar.about.com/od/correctingerrors/a/editchecklist.htmAt any rate, I'm almost hooked! I want to know who these people are and why they are prisoners/slaves/serfs/whatever it is that they turn out to be. And what sort of arcane powers are we talking about here? I'm looking forward to seeing a touched up and expanded version of this sample!