Kurgun, the game is very easy, you just haven't learnt yet how to play it very well. That dragon dude (I think it's called Rak Sheen?) is not that hard, just keep him frozen (with the "Freeze" skill, if you don't have it that's your problem), and go after the lizards first. After you get rid of the lizards, you just whack the dragon dude on the head with a blunt object until he falls, just make sure to refreeze him quickly each time he gets unfrozen. Polymorph works too, I just personally prefer Freeze.
You shouldn't die in 1 hit at your level, you either have too little life or too poor resistances (or a mix of both). Try to get items with as much of those 2 attributes as possible. Use the Enchant Weapon skill to get as much vitality and resistances in your items. In the last half of the game, my characters typically get 100+ to all resistances, thus becoming pretty much immune to magic. I fight 3 dragons at once and take NO damage from them. So relax, the game is not hard at all, you'll realize that once you get to know it better.
And finally, you're quite far from the end <img src="/ubbthreads/images/graemlins/winkwink.gif" alt="" />