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Yes, the Dragonslayer long sword is useful against them, but will not exceed the damage dished out by a powerful 2 handed swords (i.e. warblade)
A really good tactic for dragons is to cast magic resistance on them. This will lower their resistance to a maximum of 40%, and even lower if your cleric or druid is low level. YOu can then seriously hurt them with offensive spells while your fighters take the front line.
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