"Many strange things may be seen in the Great Swamps, not all real. But I tell you, there was a ship and it was real! Well it was old and all sails torn and had many holes in the hull... but anyway it was hundreds of miles from the Sea! How it came to be there, I can only wonder..."
(If it is not a hallucination, may be inhabited by wererats.)
The party comes across a nice hermit in the woods. He gives them food and lodging for the night. They awaken to his terrified screams. "East! It's east! Stop it! It'll kill us all!" The poor horror-stricken hermit dies thrashing in agony, one boney arm outstretched, his finger pointing to the east.