Looks great mate! Keep this up!
You could rewrite it, so it would work as a helicopter as well
I've found some bugs man. About particles, as I see from debug, there are almost 10000 particles, but non of them are visible... And dragon disappeared after a while (do smiles really shoot him?? I thought they are just aiming)... May be he just got bored and flow away to get some
Edit: I don't have much ideas, but try to use my flamethrower particle demo, it wasn't very slow (but not too fast as well). You can find it in some of the AUMs (may be 100). About dragon attacks, just make his flame faster and increase damage, that all I got in mind.