1 Mordekai: You know, why was there even a tavern here? There's nothing nearby except a deadly red dragon and the desolation of the Swamp of Terror.
2 Lambert: My Uncle Bilbert lived three years in a place just like this.
2 Mordekai: Really? How did he survive?
3 Lambert: Oh, hobbits can live anywhere.
3 Mordekai: They can?
4 Lambert: Of course. Anywhere a hobbit goes, there's a hobbit-at.

Yes, there are still flames coming out of Ardaxar's mouth even though he's dead. It's the pilot light.