[Shostak]

For dens, I think dragons would be more likely to favor caves with narrow entrances, to limit the number of assailants they might have to deal with at once, to line them all up for their breath attack, and to prevent them from outflanking it. I'd consider letting dragons up to 7-hexes in size squeeze through 1-hex wide tunnels at a movement penalty (we could really use an articulated wrym counter). I also allow them to strike with claws at opponents in their side hexes. Consider give your dragons talents like Thrown Weapons to help make their innate breath attack more accurate, or, occasionally give them Glaurung-inspired abilities like Curse or Stop spells.

I'd think flying dragons would want lairs in high locations like cliffs or barren mountainsides. A castle tower? Why not? Flightless wyrms might have lairs in caves anywhere from lakes to deep forests or deserts.

Four 36-point characters could probably take on a 7-hex dragon if they play it smart, though it depends on the tactical situation (see above). Do they get to choose where the fight will take place? Will either side have the benefit of any cover? Will any of the characters be wizards? A single Fireproofing spell could decide the battle.