The disc starts off with Ginta, Jack and Babbo running into a strange young man named Alviss who claims to be the one that summoned Ginta to MAR. Alviss claims to know who Babbo is and explains that he was the Arm for Phantom and was once evil, but Babbo doesn't seem to be the same Arm he used to be, at least not since he lost his memory. When Alviss decides that Babbo must be destroyed, Ginta fights him in order to defend Babbo.
When Jack, Ginta and Babbo part from Alviss, the group run into a strange dog named Ed who is looking for someone to help his mistress, Princess Snow. This is the focus of the last three episodes, because Ed leads them to an ice-covered palace where Snow is being held under siege by some low level Chess Piece characters. When Ed gets knocked unconscious during the fight, he transforms into a human who quickly vanquishes the group's opponents so that Ginta can free the princess. It turns out Ed is actually two people trapped in one body and they switch forms when they go to sleep.
After freeing the princess, the human Ed (known as Alan before he was trapped in the dog's body) teaches Ginta about the last time the Chess Pieces took over and the last person from our world that was summoned in order to save MAR. Before the party head off to take on Phantom, Ed decides to send Ginta and Jack on a training mission in an alternate dimension.
Like I said, MAR: 2 The Return of Phantom feels like the show's real start because now we get a real idea about where the show will go and what the point of the series is. Existing fans of the show should definitely pick up this DVD and if you want to get into the show, then go ahead and pick up these first two discs so you can stay up to date.