Thanks for the kind words noofy!
I feel like I'm hijacking azato's thread here but I'll answer your questions
briefly. (edit: in usual tl;dr fashion)
The dragon was a specific Danger, and the players had bypassed it before.
To give you a high level gist...
The wizard player established that only those of noble blood (or illegitimate children) in this nation have wizardry. Literally a sorcerer came down a few thousand years earlier, said "I'm in charge" and lit on fire folks that disagreed, after which he promptly put all their souls in gems that sit in the crown and advise the current ruler (which is a pretty convincing argument, you must agree). This is part of the world premise and something we established as part of my 'questions' at the beginning of play.
The nation is now at war. The players have found out that the enemies are led by the ancient undead Elven Queen and her (undead and elven) six husbands, who were all killed by (surprise!) said aforementioned nation's founder (non-elven husband numero 7) who had stolen their immortality and used it to fuel the magics of humanity.
Ok. So they discovered that while they can make 'the choppy bits' from the elven sorcerer-king corpses, it just doesn't do much good. So they spouted some lore, and did some research on the subject, talked to some nobles and found out about a god-killer spear that can shred souls (special quality: killing a person or an undead with this spear prevents them from being magic resurrected or returning/staying undead). Apparently it was a sign of the favor of a specific god, and last was seen in the hands of one of the Faithful who went to go fight a dragon and never came back.
Ok! Now there's a lot more detail there (dragons playing politics with chosen nations, what the spear is made from, religions and how gods interact in this world in general) but the point is: The spear was in the dragon's lair. They (smartly) researched how to get in. Got in. The Thief nabbed it. They left.
This was one of those cases where they roll 6- on the roll to filch the spear and nothing happened immediately. I just made a small note that said "The Dragon Notices".
So looking at the dragon I see "Demand Tribute" as a move and "Act with Disdain". So he flies over in his dragon rage to teach the nearest town (who MUST have sheltered these thieves) a lesson by breaking their twig-and-pebble boxes, and reminding them who's boss. And having been directly responsible for this, the PCs felt they had to try and help. Besides ... provisions!
So more mechanically. The campaign is 'Seven Rings for Seven Kings'. The Adventure front is 'The Heartseeker Spear'. The Dragon was just a Danger.
The fighter DID survive. She had to defy danger (the danger being paralasys from pain) to run away, and once to hold onto her life (this is truly dangerous!) till the party found her. We had a very classic scene where the party had to hold her down while the priest could say the prayers over her side, her single eye rolling in the socket while her hand was crushing the tiny hand of the halfling thief who was trying to comfort her.
So the next day, they look at the ruin that is her right side, and they're sitting around. Hungry. And start trying to figure out what to do. And they start talking options.
So right now the fighter is deciding between going to the Valley where the Veil is Thin and letting the wizard Ritual up a necromanced arm, but she's not comfortable with taking bits of living people to do so (one of my requirements). Her second option is to seek the dwarven king and their Runesmiths, as they have once or twice in history forged golden limbs for champions that have served the Dwarven nation, but they're not sure they could convince them to do this. The third option (and this showcases how flexible and awesome this system is) is for her to pledge to a god as their champion on this plane. She can multiclass the paladin 'Quest' ability, and bear an arm made of holy power as the 'mark of divine authority' but only while questing for them.
Alternately she might just rock the 'Sanzen' look (
http://en.wikipedia.org/wiki/Tange_Sazen) till the spear is used.
Make the world fantastic and fill their life with wonder and adventure right? Next game, we play to find out what they decide ^_^