Definitely try reading the HoME and the Unfinished Tales for more information on Gandalf in general. As for what happened, I think that story is actually in The Two Towers itself; Gandalf tells the Fellowship what happened to him after he fell. Of course, I could be wrong, so research around.
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The Dwarf breathes so loud I could've shot him in the dark, drunk, blindfolded and hanging upside down from a tree.
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