Okay, this episode is quite technical to outline - lots of stuff going on, and all interconnected. I will start an outline, and then come back and edit it.
Here's the first pass:
Frame: Elrond goes to Gilraen's cottage to give the lesson, to escape from the main house at Rivendell for awhile. The lead up to this is White Council business involving the Necromancer.
1. Yavanna encounters a 'wild' (rabid) beast and puts it to sleep.
2. Yavanna discusses the 'twisted' beasts with Oromë, who points out that they would be a hazard to the Children, whom he is looking for.
3. Yavanna talks to Aulë about her concerns for her creatures. He confesses to her about the dwarves. She says, 'You should have talked to me.'
4. Mairon talks to Aulë about the chain, and (horrified), steals a link.
5. Yavanna talks to Manwë about Ents and Eagles (not giving away Aulë's dwarf secret).
6. The Valar hold a council to determine what to do about Middle Earth. Manwë wants peace - others are in favor of fighting or passively going along with someone else. Manwë asks Mandos to speak, and he says, "I'm not the one you should be asking." Manwë decides to send Eonwë to summon Melkor to their council, so he can speak for himself and settle this once and for all.
7. Mairon in Utumno; gives link to Melkor. Melkor paints himself as someone about to be besieged. Eonwë arrives, and Melkor sends him out the back door to keep his association secret (for his own safety, of course...) Melkor gives Mairon the idea to revisit the ruins of Almaren. [Is Gothmog here?]
8. Melkor politely declines Eonwë's summons (okay, more with a sneer, but he's not violent). He then sics Gothmog on Eonwë, who is chased/captured/imprisoned by all the balrogs with that link.
9. Manwë and Varda talk - he decides to consult Ilúvatar.
10. Massive Montage!
10a. Manwë's vision of the Music and the future of Middle Earth, with a (remembered) line from Ilúvatar about everything becomes part of his theme.
10b. Varda kindles the stars.
10c. Melkor in Utumno preps for war.
10d. Mairon, wandering in Middle Earth, sees the newly kindled Sickle of the Valar and then later hears singing (offscreen)
11. Manwë comes down from the peak of Taniquetal and tells Varda he knows what he must do. The eagles are with him now.
12. The balrogs kill Eonwë, throwing his body down a cliff.
13. Irmo tells Manwë about Eonwë's death, and his spirit is in Lorien.
14. Mairon returns to Utumno, and when Melkor asks him, 'Well, have you made your decision?' Mairon replies, "I've found the Children, my lord."
Frame: Gilraen confronts Elrond over whatever he is hiding from, offering her advice: the worst decision is to not make a decision. Also, we probably need to decide to tell Estel he's one of the Dunedain.
I'm sure some of that is wrong/ out-of-order - I'll listen to the discussion again later and set it right.