In one of the battlefields in Act II you get to the third level where there is a stone dragon. I am sure that you need to do something to activate it. I lit all the torches and moved the vases on pedistals but nothing happens.
Those Dragons appear to be just decorations... the same ones you find in the Black Ring Member's lairs at the end of the game in Divine Divinity. I do not think they are active items.
