Spoiler alert: This post is part of an in-depth discussion of That Hideous Strength by C.S. Lewis, which will inevitably reveal key plot points. Unless you're the sort of person who likes skipping to the last page, go read the book first.
Mark Studdock accepted a job with the National Institute for Co-Ordinated Experiments (N.I.C.E.). Though his insistence on concrete work and salary details fell afoul of the N.I.C.E.'s policy of "elasticity"—basically, "do whatever you're told, and don't upset Deputy Director Wither"—he found himself accepted by the Institute's inner circle. He began his project of rehabilitating the executed scientist Alcasan, and was flattered to know his newspaper articles were widely read. Amongst the N.I.C.E.'s elite is Professor Frost, the bearded man whom Mark has seen here and there; he is also the man Mark's wife Jane saw in her first dream, in which Frost removed the head of Alcasan. It was revealed to him that the unrest going on in Edgestow was engineered by Miss Hardcastle, head of the Institute's police. They assigned him to report on some violent riots, which have yet to occur; he wrote two articles, one for the more prestigious papers, and one for the populist tabloids.
Jane, meanwhile, had a recurring dream: this time, of Frost examining her and taking notes while she lay in bed. Later, she had another dream, in which she was in the dark in a stone mausoleum, where she found the corpse of a large, bearded man on a raised platform, and a bearded, young, golden man coming down to her, but he did not arrive. When she went into Edgestow that morning, she spotted the real Professor Frost, and, frightened, immediately decided to return to St. Anne's.
Chapter 7 differs from the previous ones, in that they split their time between Mark and Jane. This chapter is told exclusively from Jane's point of view.