There is a (somewhat) unfair way to lower the dragon's HP dramatically. Get into Firkrag's room after dealing with the Mage in the prison above. When you get to the room, stay just out of Firkrag's range of sight (so he wont attack). Launch a cloudkill to the edge of the screen and watch the HP come down. After about 2 or 3 cloudkills, jump all over him using the suggestions above. BTW, if you use too many cloudkills, he'll just heal himself.
Again, it's a practical, if cheesy, way to kill him and move on.
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