Chapter 3 (dragonslayer)

Welcome to Beorunna's Well, a place full of very nice magical items and tough quests. So let's begin, shall we?
Main quest: Find and retrieve three Words of Power.

First Word of Power:
Go to the Drinking House and speak to Lillian. She will tell you what needs to be done. You have to retrieve a Snow Globe from some wizard who's somewhere in Coldwood. Enter Coldwood and then the Wizard's Circle. This "circle" is actually a portal that will take you to a dungeon of some sort. The quests are easy here but monsters aren't. You will have to fight hordes of elementals. First things first.
If you want to make your battles a bit easier I suggest you destroy two braziers in Fire Summoning chambers. They generate those nasty Fire Elementals. With that out of the way, let's summon a Water Elemental. To do this, you must have a way to cast Melf's Acid Arrow and a Slaad's Tongue. There's a Ring of Melf in the wizard's laboratory. Though it reminds me more of an artist workshop. Anyway, once the elemental is summoned you can do whatever you wish with it. You don't actually have to free the prisoner.
Ok we're done with that so let's move on to the final part. In the wizard's library, there's a book that tells you in what order the beasts were summoned. Now go to the "gong" room and repeat the order in the book (puma, dog, bear, dragon). This opens the door to the next room. Grab the Snow Globe and return it to Lillian Cambridge in the Drinking House.
There are actually items you can "create" using components if you're a wizard. Put Rakshasa's eye and Quartz crystal on the "altar" in the wizard's lab and cast dominate person. The actual manual is located in the same room.
Once you return the globe, you can enter it. It's on the second floor of the Drinking House.

Inside the Snow Globe:
The dwarves and dryads fight each other here and you are in between. I actually didn't bother "curing" them but there's a way. In the dragon cave, take the broken amulet, have either dryads or dwarfs fix the amulet, go back out of the Snow Globe, rotate it, enter back in, have the opposite side fix it (if dwarfs fixed it, then ask the dryads to do so). Then kill the dragon. He's the easiest dragon you meet. Once you take the Word of Power, Haedraline appears and talks to you for a moment. Only two more Words left. Yeah right, "only".