You guys are okay. Eduardo won't drop until after the Chieftain does. Your real problem is that you only just now hit Pikeman 1 for the first time, and the Wyrmpriest, though injured, is still a very capable combatant. Also, Ayeba jumped the gun one her Daily power use, which doesn't help. That said, this was still just a Level +3 encounter--and barely even that. I think you guys panicked when you saw the little dragon, and worse, no one did a knowledge check to identify which monster was the real threat/leader. Also: why no effort was made to turn the obelisk off is a mystery to me, personally.