You sure you're not standing in an Anti-dragon zone or something? You got enough room to morph?
Restart game or something? Weird tough :s.
Chickens? You mean the Chicken rune? It seems to be some kind of quest. No idea which one, maybe the guy at Broken Valley that was soulforged with a chicken :p. But finding the chicken rune is when you're already a dragon I guess, so Broken valley is 'gone'.
Or do you actually mean the quest with soulforged guy/chicken at Broken Valley?
The only thing I know about that is that you can kill that particular chicken and so instantaneously kill the guy to
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