Instructions
Killing the Red Dragon
Run past the first section the dragon is patrolling but not past the next walled area. Go into the first guard tower, kill the guards and get to the top of the tower. You will be able to see the dragon from there.
Shoot at the dragon using throwing knives first. Throwing knives do less damage than arrows but because you are sniping the dragon, you will save your better weapons.
Shoot the dragon using magic or your bow and arrows to finish it off. Attacking first and then locking onto your target will allow your arrows and magic to home in on the dragon.
Killing the Blue Dragon
Avoid the blue dragon the first time you see it in the dragon's roost in level 1-1. You can't kill it yet and it will fly away when its health is low, which means you'll have wasted your ammo. Wait until you get to level 1-4 to kill it.
Stand in the doorway when you see the blue dragon and shoot aiming at its wing with magic or arrows. The dragon will fly away when its health is around 50 percent, but this time you will encounter it again.
Climb to the next level to find the blue dragon sitting above the staircase. The dragon will be shooting fire from left to right and then from right to left. Try running halfway up the stairs after the dragon has gone from your right to left by running up the right side. There is a safe spot on a small landing halfway up.
Shoot at the dragon's head from the safe spot. The dragon will be unable to burn you from there.