As ACSS mentioned, you need to use the dragons healing skill. Put a couple of skill points into that skill.,..you will get dragon skill points from books you find.
I found playing in dragon form needed a real change in tactics for me.
I tend to fly in short bursts, keeping an eye on my automap for enemies. When I see them I try to also find places nearby that I can use for cover, such as trees or corners or cliffs. I then try to take out any single dragons that are close. Once they are gone and I have fully replenished my hp I nose dive for the nest and hit it with my Fire Sphere and Fire breath.
Once the nests are destroyed I find it a lot easier to then retreat and replenish my hp and then attack the ballista whereas ACSS said he prefers to take out ballista first.
I guess its all a matter of player technique.
Good luck.....you are in what I think is a very frustrating part of the game.
edit:
Move around a bit....you just need an open area to change to a dragon. Even though it says you cannot change you should try walking around to another part. Just keep pressing Q till you change.
ACSS's advice was not useless.....what was useless was that your original post did not mention your new problem.
In fact I am still unsure what exactly is your problem.
Are you saying you want to change back to human form?
