|James MacKenzie RPG Superstar 2008 Top 16 aka Sir_Wulf|
In some ways, the scenario sets up the PCs to fail in that fight.
The villagers provide little or no useful information about the daemons attacking them. Without information about the foes they face, a party hoping to stop foes on the dam may find itself grouped up in a formation well suited for the daemons to blast them. 18 dice of breath weapon is difficult for 6th and 7th level characters to shrug off. (The average breath weapon damage to a character with a +5 Reflex save = 52 points. The average hit points of a 7th level cleric with 12 Con = 52 hp. See the problem?)
When I played, our party suffered four fatalities. The remaining two characters were barely able to flee.