Fear Aura? The white dragon doesn't have a fear aura... He does have Frightful Prescence, which is a standard action.
How did the Warlord get hit moving up to the dragon? Only creatures with Threatening Reach get ranged OAs.
Did the player's wait until the -2 to attacks was gone before using their dailies?
And really, breathing every round is slightly evil as a DM.
On a side note: I'm really thinking about letting action points either give a reroll or bonus (ala 3.5).
I may have remembered the first round incorrectly then. I know he spent an action point in the first round, so he probably used it for that instead of attacking. Either that or the DM played it wrong.
He was definitely having it take OA's whenever anyone closed with it.