Stony Gift of Keranandra - This impossible matrix of hematite bands around an obsidian oval was claimed by Lord Varta of Dursan, a famous warlord. In the possession of local rulers for centuries, the gem was eventually gifted to Thramdolir D'Kunderak (a famous Dwarven adventurer) for his heroic deeds. He used the gem in several adventures, acquiring some notoriety. The Dwarf was eventually killed in the Farspar Mountains by a blue dragon which still haunts that region, named Arul Sylax. As far as is known, the gem remains in the dragon's possession. Alone, the gem gives "Resistance" to elemental attack; Cast "Conjure Elemental" at 8th Lvl 1/day; Cast "Move Earth" and "Wall of Stone" at 8th Lvl, 1/day
Assuming that the PC's are dropped off by Molfin, their closest approach will be the village of Olafsvik, population 100 Noladen, 100 Halflings. This includes a human Druid named Aurum, who has a way with wolves, eagles, and bears. There is also a Half-Ogre named Bort (AC-16 Chain, +7 Great Axe 2d12+4) who helps with security in exchange for a place to live. The PC's will be able to buy food and supplies here, but will be pointed in the direction of Muspell's Vale - "Keep going upstream for a day, can't miss it. When everything looks dead, you'll be there." If they explain what their intentions are, the entire village will shun them and urge them to turn back or be on their way.
The mountains around Olafsvik are infested with orcs, so attacks are guaranteed. One particular gang has accumulated around a vicious Orog named Garhakk, largely staffed with orcs who refused to serve in wars to amuse the dragon. Garhakk has a +1 spear of Noladen make, and a good chain hauberk. They lair in an old Dwarven ruin, an ancient manor of unknown ownership and primitive construction. The band has about thirty Orc warriors, four ogres, a single Hill Giant named Juk (AC-15 due to armor made of shields affixed to a mammoth-hide poncho), and a Manticore named Shig-Ruppak. The giant is the band's artillery, and cheerfully does anything Garhakk tells him to. The manticore usually patrols their territory, and alerts the band to potential targets. In a chest in Garhakk's chamber is the group's treasure - 1800 cp, 1000 sp, 70 gp, 2 x Chrysoprase (50 gp), Jasper (50 gp), Onyx (50 gp), Star rose quartz (50 gp), Zircon (50 gp), Potion of Greater Healing, Potion of Growth, Potion of Hill Giant Strength
The blue dragon Arul Sylax is an adult dragon which has taken up residence in an old volcanic ash cone in the far northern end of the FarSpar mountains. In addition to all his other abilities, Arul Sylax is a spellcaster, 1/day at 5th Lvl, Spell Attack +9, Save DC-17, Spells: Dominate Person, Polymorph, Invisibility, Stone Shape. He also has a "Ring of Fire Resistance" affixed permanently on his nasal horn. It acquired from an adventurer many decades ago, who apparently didn't understand the different sorts of dragons. It served him well in his fight against the Red Dragon that tried to take the valley from him.
The actual area claimed by Arul Sylax is a volcanic field dotted with lava flows and several cinder cones of various sizes, in a region called "Muspell's Vale". It is about 750 miles north and slightly to the west of Durham, at nearly the same latitude as the Elven Gate by several hundred miles west. There are several small streams surrounded by a plain of ash and sand, covered with scrubby vegetation and a few shallow pools of acidic water. Parts of the lava fields are dotted with steaming fumaroles. There are few prominent points, though here and there can be found scattered bones of fallen prey, or even the remains of giants and one young red dragon that came too close and tried to claim the volcano as its own. Arul Sylax has few competitors in his part of the world, but he also has no mate. There are few animals large enough to support a dragon, so he hunts the mountain ranges to the east and west, and on occasion the sea to the north. Muspell's Vale is plagued by giant scorpions, which live in the many crevices and caves in the lava fields.
Two cinder cones serve as homes for rival tribes of Orcs (Moonfang and Skullhammer), both of which pay tribute to Arul Sylax. These orcs use slaves to tend pigs and goats, while they themselves raid the villages in the surrounding mountainside. Occasionally, they attempt to bribe him with treasure and sacrifices, leading him to take a side. The orcs have stiffened their ranks with ogres and trolls, and Arul Sylax delights in stirring up trouble between the tribes - the battles take place on the valley floor, and this amuses the dragon immensely. Otherwise, the orc bands are much like Garhakk's group.
The kobolds, on the other hand, reside within Arul Sylax's lair itself, worshipping him as a god and acting as his spies in the outside world. They inhabit the lower reaches of the lava tubes, which they have trapped extensively. Their two favorites are clay pots full of poisonous vermin, carefully gathered up, and "pits"; a weakened floor drops the victim halfway into a tube below (Restrained), where kobolds are then free to attack the victim's lower torso with spears at advantage. Arul Sylax's actual lair is on the inside wall of the caldera of the tallest cinder cone. It is mainly accessible through tunnels twisting up through the lava flows, which have been "improved" on by generations of tireless Kobold diggers. Numerous deadfalls and pits line the path, placed there by the tribe of kobolds that reside in the upper levels. A Roper has found service as a "doorman", being allowed to devour kobolds and intruders. There is a gallery of statues crafted using Stone Shape, humanoid shapes in terrified poses, made of lava rock... but they look petrified.
1) Main Chamber - Ash and sand, where Arul Sylax usually greets and treats with guests and visitors. Tunnel to caldera is wide open, for easy flight or swatting guests out to a 100' drop. Side chamber holds trapped treasure, booby traps and cursed items that the dragon has accumulated - Helm of Fire Resist... Vulnerability, Amulet of Thought Detec... Enemies. +1 longsword that swings back and strikes the wielder on a miss, all hexed. Impressive gems, look like 250gp gems, worth only 20gp, glow with false enchantment.
2) Samira's Chamber - Kobold tunnels that have been improved with art, home to a companion, a medusa named Samira. Dressed as a Pershamon noblewoman in permanent mourning ("steadfast widow"), she goes about veiled. Arul and Samira are both lawful evil, and enjoy the conversation the other provides. Samira is aware that Arul Sylax would vaporize her immediately if she attempted to petrify him, so she is quite careful to avert her gaze. The kobolds have carved her out a set of quarters on the inner caldera, a simple but adequate home that she has decorated with items taken from a trade caravan. She often plays the role of majordomo when dealing with humanoids from the outside world, as having a well-mannered Pershamon as an emissary often throws guests off their parley.
3) Southeastern Flow - Heavily trapped tunnel, used as a home to Korius the Dissector. Lvl 6 Necromancer who serves the dragon. He is served by a variety of skeletons, and has a pit full of vermin that pick the flesh clean prior to reanimation. Korius wears a "Robe of Eyes", "Bracers of Defense", and a "Rod of Polymorph". he also has a gem with a bound Chasme in a onyx fly. When crushed, the demon will attack the user's foes, then depart after a few rounds. Korius handles affairs in civilization on the rare occasion such is necessary. The path between this tunnel and the others is guarded by a Roper which sits in a side tunnel to grab the unwary. It will not attack high profile residents, though it is not averse to a kobold or two.
4) Trapped Tunnel - Pits, deadfalls, and lots of traps involving containers full of "Centipede Swarms". A pack of Gricks lives in this cave, kept at bay only by watchful kobolds and the scent of Arul Sylax.
5) Fake Main Entrance - Augmented with some crude stonework by Arul Sylax, resembling a dragon skull. Offerings and sacrifices are left here. Area is dotted with statues of agonized victims (actually just lava rock, Stone Shape, and a bored dragon). Inside are various shackles set into the rock. Kobold guards watch here, as does a single Mimic set up to eat the unwary.
6) Kobold Hall - Countless kobolds, led by a Kobold Shaman, reside in various small warrens and burrows cut from the side of this set of flows. They are absolutely in fear and adoration of their god, who only speaks to the Shaman. The kobolds primary weapon is the shortbow, augmented with a heinous brew gathered from the giant centipedes that infest the caves. DC-11, 2d6 poison damage + paralysis. Melee fighters use shields and spears, but mainly serve to protect the missileers.
7) Dragon's Den - Arul Sylax resides on the lowest level of his cave in the volcano wall itself, sleeping atop a mound of treasures. This side passage, which slopes down and has twists and vertical areas, is where the dragon actually lives. His larger treasures are stored in small side galleries, and coinage lies scattered about the sandy basalt floor. The dragon actually sleeps under sand and gravel in the larger chamber, with scattered coins - when sleeping, it actually looks empty. The other chamber is home to a trophy room, with the skulls of Arul Sylax's favorite foes - a Red Dragon skull can be found here, a Beholder shell, several humanoid skulls with distinctive helmets (including Thramdolir D'Kunderak), two giants, and a Behir.
8) The Killing Fields - The area around the volcano is dotted with sinkholes, and infested with giant scorpions. There is often one at the bottom of the other. DC-20 WIS to spot, DC-15 to avoid falling in. A narrow path winds through the boulder field, leading to the fake entrance.