What has confused me for a long time was in season 4, in "One minute To Midnight" and "Judgement Day", when Joe is set up & kidnapped to be brought before the Watchers to face the charges of breaking his oath and falsifying chronicles. Joe's friend and the head of the meeting, Jack Shapiro, brings to light the fact of more Watchers have died since Joe and Duncan became friends.
MacLeod comes to bust Joe out and ends up putting his own head on the line to testify with Joe. Then the death knell sounds as Dawson is found guilty when Jack's son, a new Watcher in the field is killed. MacLeod tries to escape with him but Joe refuses to leave the Watchers' headquarters.
The next morning Joe is set to be executed. Just before Joe is shot, him and several of his fellow watchers are mowed down with machine gun fire. MacLeod is on his way to make another attempt to save Dawson and passes by the gunman which Mac senses to be an Immortal. Mac finds Joe barely alive and seeks refuge at the Watchers' bookstore. Jack Shapiro believes Duncan MacLeod was responsible for the massacre at the headquarters. Jack then orders the Watchers to hunt MacLeod and kill him on sight.
MacLeod tries to infiltrate where Shapiro has established the new interim headquarters but is shocked when he finally meets the Immortal that has gotten him blamed for all the Watcher deaths. It is his long time gypsy brother, Jakob Galati. MacLeod rushes to catch up with him but is shot through the lung by a Watcher, which then quickly closes proximity to deal the final strike.
Just as the blade is about to drop, the Watcher is killed by Jakob and Mac 'dies'. Duncan wakes up to Jakob violently playing guitar, and were it not for the chaos mixed within both men, it would almost seem like old times. Duncan finally learns the horror of why Jakob is there. After Jakob and his long time Immortal love Irana had settled down, they were pursued by men who burned their home. Jakob had to watch as notorious rogue Watcher & Macleod's long time nemesis, James Horton beheaded Irana, and Jakob helplessly took her quickening.
MacLeod realizes he is caught in a seemingly no-win situation, seeks to end the war by setting up a meeting between Dawson and Jakob in hopes of some beginning to resolve. Unfortunately, Dawson set up Jakob to be brought before Jack Shapiro, and Jack's only idea for resolve is revenge with the blade for Jakob. Macleod learns from Methos the Watchers are holed up at a mortuary.
MacLeod stalks his way into the sanctuary and learns the diabolical twist of intentions. Jakob is taken to a side room to await execution by Jack as both MacLeod and Joe plead for understanding. Jack sets goons on MacLeod long enough to delay him and a flash of the quickening sends MaclLeod flying signifying Shapiro's revenge, the death of a friend trying to avenge his love, and mistrust abound.
To my understanding, the Watchers set up the hideout at the mortuary because it WAS HOLY GROUND. I believe it was a mortuary in a cemetery. Nonetheless, it is worth watching again.