Shakirawolf: HI"well read that he drops good gold and items,so i cant restart and keep my old game.thankyou.
Green_Hilltop: He does but you're able to visit the Emerald Isle later on, in this game you can kill everyone and they all drop loot. You're not really supposed to get him now anyway as you either have to be really good at the running strafe tactic, lucky and patient to get him now (I think I read it takes about twenty minutes of running around and shooting at him to kill him), or use some kind of an exploit as he is too strong for your party in the beginning. That's why the shield is right in front of the entrance and not behind him.
Also why he goes for the rats first.
The dragon is perfectly kill-able, but it is a time consuming task and you need to know what you are doing.