I just started my first 3e campaign with Sunless Citadel this past Saturday. Four characters, all first level - fighter, wizard (evoker), a rogue, a druid & his wolf companion. The fighter is secretly a cleric/rogue using the multiclass at 1st level variant.
SPOILERS
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At any rate, it went well. Everyone had a great time. The rogue got knocked down to unconciousness or near to it a few times (twig blights, dire rat on the ledge, and pit trap at the front door).
Then they allied with the kobolds and took on the goblins with Meepo in tow (although I made him a Warrior1 and changed his name and personality to seem less like a pathetic wimp and more like a schemer. Basically, like the Meepo from story hour but without projecting the wimp image to the party). They opted to come in to the goblin territory through the trapped hallway rather than the back way through the caltrop hall. They made short of the first four guards and then luckily proceeded directly to Calcryx's room. Unfortunately, they were too loud in subduing him and drew a force of goblins from the main living area. Soon they found themselves surrounded, fighting with their backs against the pit in the hallway east of Calcryx's room, with goblins pouring in from the the north and south and others trying to bust down the door back in the dragon's room (which they had been able to lock behind them just in time). I thought that they were done for, but some good tactics and luck (a well placed color spray back to back with a great crit) saved the day and they were able to mop up the goblins in the hall and move to a position where they could stand blocking a doorway, and fight the goblins one or two at a time. Amazingly, they came out with barely a scratch (especially funny when you consider that one of them nearly died from rats and fallig 10').
At any rate, we played for 6 1/2 hours and had a great time and didn't really have any problems. One minor thing I noticed was that the description for the goblin guard rooms says six goblins in the text but the stats list only four (I went with four).
As for the dragonpriest, I personally just didn't like the idea of the troll-priest, so I'm planning on using a wight instead (or maybe a vampire spawn). Unlike Balsamic Dragon's experience, my players became immediately intrigued by the door they couldn't open and bargained with Yusadryl for the key. Now they're dying to check out the area behind the door but have promised the koblods to help finish off the goblins first.
One other thing that was amusing -- when they were in Oakhurst, they opted to have the rogue sneak into the mercantile after hours and steal a healer's kit rather than pay for it, even though they had the gold. The constable noticed some of the other characters out in the street and when the merchant woke up the next day to find the healing kit and his personal stash of money both gone, they put two and two together and set off after the heroes with three militia men. The forces of law caught up to them as they were making camp just outside the ravine. The party, hiding just inside the woods, saw the militia coming and ambushed them, killing them all, including one who had surrendered and the merchant who fled (and was chased down by the wolf).
The funny thing, was that after doing all that with barely a thought about the moral issues, the players later spent quite a while debating over the ethics of allying with the koblods against the goblin tribe. Go figure, eh?
At any rate, I've rambled on quite a bit, but to get back to the point at hand, yes we're all enjoying the module quite a bit and haven't encountered any significant problems so far.