Well I beat the dragon using shadowkeeper I know it's cheap but oh well I just raised all my characters hp up and then i kept using magic missles and then He died and then... victory!

If you want a really easy way to kill dragons then use finger of death if you have it, though there are much better ways. if you are really stuck, leave it and come back when you are much higher level. i left all teh dragons until i was level 17 and then they were really easy.

Actually I defeated the dragon at level 10 quite easily as follows. I had acquired a number of wands of lightning, which I had so far failed to use, due to the fact that bounce all over the shop. 3 in fact is what I had. (toss the holy hand grenade, sorry just remembered a bit from Monty Python). Anyway, arranged my group in a semi-circle, summoned some fodder and while the dragon was preoccupied, hit him with a load of lightning. It didn't bounce back and caused loadsa damage. He was dead after a few rounds (admittedly I drained two of the wands, but hey....)