The group rests and during the night convince Meepo to help them. Meepo tells group of the “back way” into the Goblin area of the dungeon. The group initiates combat against the first group of goblins they find. They find some captives; 3 kobolds and Erky Timbers the Gnomish priest. The kobolds believe Meepo is working for the enemy goblins. They get the priest to help them open a door then let him go with some food and a weapon. Inside the locked room they find 5 regenerating skeletons and some treasure, after a tough fight they lock the skeletons back inside the room with the treasure in hand. The group rests. The next day the group sees graffiti threatening Meepo. They stumble upon the lair of Guthash the great Dire Rat and defeat her and her brood. Next they backtrack and decide to make a frontal assault on the Kobolds, after a very difficult battle with Yusdrayl and her Bounders they win the day (exhausted and drained).
Game session is concluded immediately following that battle.
The dungeon was quite obviously the home of a multi-racial dragon cult.