This is my first post. Everytime I go north of Ish'nad, the dragon breathes fire on me. Is this supposed to happen?

I also found an amulet of life either in the serpent's lair or gypsy boat house. I can't sell it at the armory or magic shop. Is this a special quest item? Please respond. Thank you.

The dragon will continue to fly over you and breathe on you at the most inopportune times until you have the shroud you will need to trade with him later and talk to him in his lair.

I am not sure I remember the amulet of life.
Does it look like the Amulets of Holding?
(Bronze chain, bluish-green stone?)
Those can be equipped and invoked on some characters and will increase certain stats (usually strength). I never used the spells and after invoking them would sell or drop them.
: )
Moni

Yep. Erathsmedor can't see too well. His aim's a bit off. After you get the Mavin from him, though, he stops. In the meantime, if you have the spell Artifact of Fire, charge up one of the Silver or Jewel rings with four hits of Pro Fire magic. Your lead character is the only one who is affected by Erathsmedor, so give him/her the ring and he's fireproof.

I don't know why you can't sell the Amulet of Life. Once you no longer have a Priest or Monk character, you can't use it, either. Go figure. Nope, it's not special. Just drop it if you don't want it.

-Sazerac

The Amulet of Life looks like the orb of clarity. It casts Ressurect(5 charges) and can be equipped by my priest or warlock. I can't sell it at the armory or magic shopp. I just gave it to my mule character in case I need it later.