The group emerged from the old-city tunnels back into the current town, in time to see the inhabitants being terrorized by packs of kobolds and a large bad-ass dragon straffing the air with large bursts of cold. The group spent a few rounds buffing, then engaging the kobolds. The kobolds ended up being a bit tougher than they looked, but the group really did not have an issue defeating them, with every member chipping in with their particular skills (Bobby slashing stuff, Logen hacking stuff, Sumiko debuffing stuff, Carnage scaring stuff, Clover casting spells at stuff, Nod punching stuff, etc.)
The group was smart enough to set up Cold Energy protections, so even taking a hit from the dragon's breath and an unexpected Freezing Sphere barely caused damage.
The biggest problem with the dragon was how to get it from Up There to Down Here.
Sumiko grabbed Carnage and using the power of her Wyrmstone teleported both of them high up to the dragon's back. As they appeared, Carnage launched himself growling at the dragon's wing and, despite most of his blows being deflected by the unexpected resilience of the creature's hide, managed to tear a large chunk of the behemoth's flesh, making it lurch in the air [it failed a Fly check]. Sumiko was thrown off its back but safely glided towards the ground. Carnage managed to hang on for another few seconds before losing his grip but on the way down shifted to a protoplasmic shape that cushioned his fall. The dragon continued to drop heavily towards the ground.
Clover cast a spell on Logen so he could charge up through the air to reach the dragon and attack. Schnitzel stood near where Sumiko was landing and begged to be teleported; Sumiko grabbed him and tried, but the Wyrmstone didn't work quite right and they ended up appearing higher in the air near the dragon.
With the dragon low to the ground, the barbarian steeled himself for the dragon's return attack and cold blast... and that's when Bobby sent three poisonous projectiles at the dragon, coated with ichor from a mysterious cache the party found in its early days of traveling. The poison was virulent and happened to hit just the right spots, and the dragon's system wasn't capable of withstanding the sudden unexpected shock and had not spent years building up a secret immunity to that particular poison. [Note: The dragon actually somehow failed its save; and the three doses apparently were worth 24K gold altogether, so we won't be finding any more of THAT stuff. But it was well-used.]
The dragon belched once, groaned, then died, crashing into the ground and leaving the group standing there with "Did we just do that?" looks on their faces. Barely anyone had taken a scratch. Of course, we looked Awesome.