A very interesting section of a larger story. I'd love to know more about the surrounding tale; but fitting in more exposition just wouldn't work. Nevertheless, I enjoyed what little story was there. The writing was good, and the characters surprisingly well defined within the material.
One thing bugged me, however. (Spoiler - click to show)The one winning ending involves saving the life of a man you've just met, to whom you owe pretty much nothing. Sure, you've kissed him, but that's it. I just didn't think it was sufficiently motivated.
Overall, I quite enjoyed The Legend of Lady Magaidh - what there was of it. If it was longer, I probably would have loved it. As it is, three stars.