I am stuck, I cannot kill icasaracht the ice dragon, and cannot leave the Island, before its dead, what do I do, my party is in average 12 lvl, but I am out of arrows.

Well, her main attack is cold based so getting your cold resistance up to 100 or more is a good start. Do it with everything you can to get at a 100% or more cold resistance. Spells, potions, the works. The usual buffing spells are needed here aswell.
Then summoning fodder is a good idea (a nice suit of armor can help in here) and move your people a little back.
After that start casting some area of effect spells like web. They might hold of some of her minions. Fireball after that would be good or cloudkill if you have it. Then start pounding on her with everything ranged you've got. Your mage and druid (if you have them) should almost be countinously summoning fodder and your cleric should try spells like flame strike and after that concentrate on healing.
This will work, at least it did for me but other tactics might be as good.

Hey Freke.

What does your party consist of? Do you have a save game from prior to meeting the Ice Dragon?

It took me a bit but I was able to kill her doing the hit and run tactics. Basically as soon as I see her I hit her hard, then as her fodder come to attack me I split my group. My Figher, Fighter/cleric, and Fighter/Thief run one way, Paladin, Ranger/Cleric, and Fighter/Mage run the other. She will follow one group..the other group then attackes her minions, while the Dragon Chased group, all with ranged weapons, keeps her busy by taking pop shots..when they get cornered, my Paladin led group then uses thier ranged weapons to draw the dragon away, giving the Fighter group time to heal a bit...then as Paladin group gets worn down, Fighter group takes over, etc...but the main thing was to kill the fodder first, only taking pop-shots at the dragon to get her attention away from one group..

You should have marked your post with a spoiler tag, Freke, since you're revealing the identity of a major villain in HoW. Please remember for next time. [img]smile.gif[/img]

It's difficult to avoid her initial breath weapon since it happens just after dialogue. Try and buff yourself up with potions/spells just before you enter her lair. Use some summonings (elementals, skeletons, etc) to distract her sahuagin allies. Get your arcane spellcasters down to the bottom of the screen so that they have a clear line of fire to her, as your melee fighters will probably be up against the wall to the north. Lower Resistance and Greater Malison spells will greatly help.

12th level characters should let you cast up to 6th level spells. Try using these:

Defensive spells:
Protection from Evil 10"
Resist Fear
Emotion:Courage
Emotion:Hope
Resist Cold/Fire
Bless
Prayer
Recitation
Defensive Harmony
Stoneskin, Mirror Image, Blur for Mages
Sanctuary, Draw upon Holy Might and Entropy Shield for CLerics

Offensive spells:
Spike Stone
Insect Plague
Great Malison
Death Fog
Emotion:Hopelessness
Lower Resistance
Cloudkill
Web
Entangle
Chromatic Orb
Slow
Curse
Cloak of Fear
Stinking cloud
any just about ANYTHING else that is area effect

Use potions of speed as opposed to haste (no fatigue effect), and use giant strength on the fighters

Its just my opinion, but fighting the last guy on level 12 is a bit hard, so I wouldn't know much. But as soon as she says "near death" I'd go Rambo her.