I always go with the dragons. All you have to do is get the egg. Killing all the dragon hunters is a promotion quest, & doesn't make any difference to the alliance. I also usually ally with the Necromancers' Guild and the minotaurs, of course.
Pat, if you want a cleric (which I think is necessary), Dyson is a good choice. Does Cauri have body & spirit magic? I kept Frederick Talimere the whole game.
"Christof, do not play with thy food. 'tis unseemly".