I've seen some really good tactics on taking out the dragons, but what I have found most effective is the wand of Cloudkill. The regular spell won't work very well, but using the wand chokes 'em out like a charm. Simply stand out of visible range, fire about three shots of cloudkill so that it engulfs tha dragon (works on either one) and collect your prize when he keels over.
Hope that helps.
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