[Kestrel Daystar]

The amulet helps alot with slaying the dragon. In order to fix it you need to leave the snow globe and shake it (or turn it or something like that). That will make the dwarfs friendly and the dryads hostile.

Take the amulet to the dwarf leader and he will repair it then leave the snow globe again and shake it.

Now the dryads are friendly and dwarves are hostile again. Take the amulet to the dryads and ask them to restore the magic in it and there ya go, it’s all fixed.

It provides some good resistances that help against the dragon. I also believe the dwarves and dryads both become friendly once the amulet is restored but it has been an age since I last played so my memory is alittle foggy.

Hope that helped

--Kestrel--