This is really an in-between episode, a bridge o the res of the series, so it's really difficult to classify. However, I'll give it my best shot.
When this episode begins, we discover the world Hitomi has ended up on is Gaea, where the Earth is called the Mystic Moon and is said to be a cursed place. The boy is Van Fanel, one of this new world's inhabitants. While riding to a city with Van, Hitomi has another vision of the fighting giants and a country in flames, but dismisses it. Upon arriving hte the country of Fanelia (FAH-nel-ee-ah, not the crappy english fuh-NAE-lee-uh), Hitomi is amazed to discover that Van is the soon to be crowned king of fanelia, having just completed the rite of dragonslaying. We also get the first appearance of Merle, the adorable cat girl voiced by Ikue Otani, famous for being Pikachu. Merle, as we find out after Hitomi has a nice long wallow in self-pity, is a mischeivious little girl who's 13 going on 6 and van's extremel protective and oldest friend. We like Merle. We reeeeeallly like Merle.
During Van's coronation, Fanelia is atacked by an invisible enemy who burn the country to the ground (yay! firefirefire!) and slay all the samurai. Van goes out to fight in the legendary guymelef Escaflowne, which is powered by the energist he took from teh dragon. Hitomi is shocked to realize it's on of the giants from her vision. During the fight, Van's mentor Balgus is killed, fanelia's people scattered, and Van and Hitomi surrounded by enemy guymelefs. Yet another pillar of light throws them to who knows where int eh middle of the battle, leaving Fanelia in ruins.
The best part of this one? Merle! And naturally...the fire!