Caves of Myrddin update

Seven went in to the dungeons below Dundagel today: three warriors (Taurus Hell's-Heart, Hugo the Bastard and Jan of Flanders), two mages (Òengus the Repellant and Geoffrey of Puddingdale), a halfling (Rando, not the one who runs around in a loincloth) and a handyman named William. Only Rando, Taurus, Hugo and Òengus returned alive. Three of them proceed to get drunk as skunks to help them forget the horrors they saw. Here's what you can put together from their drunken rants and sobbings:

• Somewhere under the East Tower (the gatehouse to the castle) they found an archway decorated with a dragon motif that led to a previously unexplored dungeon level.
• They fought two separate groups of monsters wielding wicked axes. Descriptions of them are rather jumbled. Were they humans? Humanoid? Mutants? Undead? Their leader wore a kickass Erol Otus style batwinged helmet, which Hugo the Bastard now claims as his own, having slain this massive foe in single combat.
• Jan and William were torn to pieces by werewolves. Geoffrey also fell to a werewolf, with his face bitten off. To try to prevent the dead from returning as monsters their corpses were beheaded. Not that there was much left of Jan or William to decapitate.
• A gruesome meat locker containing human corpses worried the party that Joe Mama might lurk nearby.
• Rando bravely attempted to negotiate a tiny tunnel that only a halfling could enter.  Well, not that bravely, actually.  At the first evidence of monsters (a giant rat turd) he got the hell out of there.

Back at the abbey one of the fighters (I forget which) blew his save against poison while carousing and lost all of his money by investing in a merchant caravan that doesn't exist.