You can not defeat him as a dragon; you need to turn him human again (also it wouldn't hurt if you finished off the rest of Broken Valley, if you haven't already, so you were about level 15). The librarian is looking for a book; find and return it to get the second volume...
Help on Killing Amdusias. Any tips would be nice. (D2:ED topic, but AFAIK it should be essentially the same in DKS)