Fin summons clouds and Maggie casts overland flight on you. Alethia's spell ensures your proper positioning, and the dragon and his entourage fly right below you. They spot you (no surprise round), but you get the jump on them anyway (they rolled a one on their init d20).
As they fly through the clouds, a number of balls of electricity appear near them and explode, followed in rapid succession by a second volley. The clouds light up with blue energy, and it arcs throughout your enemies. All of the manticores, unusually large as they are, are killed by the explosions, and many kobolds and hobgoblins are blasted off their mounts. The dragon's entire entourage falls to the earth. Some have rings of feather fall, but it is unclear if any are alive. Even the dragon seems to have been somewhat harmed, tohugh it clearly has some resistance to both magic and electricity (63dmg).
Shando charges the creature in the air, landing on its back and punching into its neck. He just barely fails to bash through, though he metal plating is deeply dented. Dyria similarly fails to penetrate it.
Murdoch, however, conjures two blasts of acid at the dragon, both of which tear right through its carapace and cut huge holes into it. Though he is slightly resistant to acid, the non-magical acid is unaffected by the dragon's resistance to magic (134dmg).
Timrin's sword also fails to penetrate the dragon's plating.
Barnak blasts the dragon with thousands of blades made form holy energy, but they all glance harmlessly off its magical hide (Failed to penetrate SR)
Marise and Alethia swoop down from the clouds. Alethia fires her bow three times into the dragon's metal plating, and Marise breathes a gout of icey wind at the dragon, which it twists to partially dodge (7dmg)
Enraged, the dragon continues to turn on its side, wrenching free of its attackers and blasting its breath weapon upwards, striking everyone with magma blown by a hurricane-force wind (98dmg to timrin, shando, and Alethia, 52 to Dyria, Murdoch, and Barnak...the molten metal is so hot that the fire resistance has no effect.* Marise is "killled" and disappears to her native plane to re-form, dumping Alethia overboard, though thanks to her ring of feather fall, she does not fall to her own likely death. The others are blown back 100 feet from the dragon. All are coated in magma and will continue taking damage the next round unless they spend it trying to get the magma off, and will face a rather steep concentration check to cast spells.
*He used a Metabreath version of the Metamagic feat Searing Spell from Sandstorm.