This walkthrough might help you, particularly this section:
Dragon: Use the map to go the Fiery Mountain at right of map. Talk
to the lady transport dragon that carried MacGuffin and was released
by Ivo. She wants to be a feared dragon, a position usually held by
male dragons. Nate will give her a starter gold coin for her hoard
and she will give the sword.
Get the head of the lava bowl: Look at the lava bowl -headless metal
dragon. Check the hole where the head was located. Check the
furnace. Take the stone bowl right of the furnace. Check the coin
press machine left of the furnace. Check the anvil and stone trough.
Take the pliers and hammer. Take a glittery stone from the ground at
left.
Pixies: Remember where we saw a dragon's head. The pixie at the
altar was cleaning the sooty dragon's head. Pixies love shiny things.
Lay the stone on the anvil. Hammer about the anvil by clicking the
hammer on the anvil. The stone splits open to get stone with crystals.
Jump to the pixie mine. Go up until the once smoky passage and then
right. Go down to the altar. Give the stone with crystals to the pixie
cleaning the dragon's head. Take the stone dragon's head. Take also
offering - gold nuggets from the altar.
Make a gold coin: Jump back to the Fiery Mt. Use the dragon's head on
the hole of the lava bowl. Check the hatch of the lava bowl. Pull the
chain of the lava bowl to open the hatch and get lava inside the
furnace. In inventory, combine the stone bowl and gold nugget. Place
the stone bowl inside the furnace. Use the pliers on furnace to get
the stone bowl with melted gold. Use the melted gold on the gold press
at left. Look at press to get gold coin. Give the gold coin to the
dragon.
