I just finished running my group though Episode 1. They first rescued the Swift family from 8 kobolds--and quickly realized this isn't 4E when the two beefy toughs (paladin & barbarian) both nearly dropped to 8 attacks. After that they started being a lot more careful and sneaking through the city. Two more fights on the way to the keep, both times with no surprise and ready for a fight, they did fine.
They got to the keep, rested, then cleared the tunnel, went to the sanctuary and took their time, causing a distraction at the back entrance and getting the refugees safely back to the keep. Then the sally port was attacked which they handily repelled, followed by an interrupted short rest and running off to the mill. They thought the mill seemed fishy when they got there, possibly a trap, but their solution was to spring the trap.
This hurt them. A lot. No one died, and it was a bloody battle, but they pulled out a win, barely.
Back to the keep to try and rest, when the dragon attacks. They managed to deal 30 damage in just over 2 rounds, and the dragon left, bellowing "Frulam, I'm not your lapdog, here to do your bidding! Consider my obligation fulfilled!" in Draconic. The party is barely standing at this point, only the barbarian still near full health.
Then Cyanwrath issues his challenge, and the barbarian marches out to face him, with the entire keep thumping their spears into the ground with a thundering rhythm. Cyanwrath dropped him with a critical hit and left them.
Then they finally got a long rest and leveled. I thought it felt like a frantic night with their backs to the wall the entire time, but ultimately I'd say the first episode was a success!