when doing the dragon quest, as well as the rat quest, and virtually any quest, make absolutely certain that the unit which starts the quest is the leader of the group for each and every piece of the quest, if anyone else does even a part of it, or takes over command, it is probably going to fail, even if you trade whatever returnable item you recieve, the rat corpse, the dragon egg, whatever, back to the person who originated the quest and let them complete it. infact its probably a good idea to not alter the group in any way once you begin a quest. its not usually a probablem with the rat quest, being you have so few units, though its gotten me once or twice, but i run into trouble with the dragon one all the time as quest points pop up all over and i have a bunch of champions by then, etc.
i whole heartedly agree on quests being more involved. i would like to see the goody huts altered. 800 gilder lying around with no one protecting it. a ring of such and such sitting in a pool with no guards or defences, and all that is required of you it to move someone over it. i can usually get around 8000 gold and various power ups from undefended goody huts half of which are within my borders so i don't even have to work to get em.