The heroes gather together what treasure there is, finding out that there was quite a bit less than could be seen, as some of that was illusionary as well, having been spent, apparently, on the DBN (Dragonborn Necromancer)‘s experimentation and necromantic endeavors. They do, however, find several small magic items and a cache of the DBN’s notes, clearing up a couple of mysteries and opening the heroes eyes to a whole new threat.
It seems that the DBN has found a way to create minor magical weapons and armor (in game terms, a +1) by transferring the life energy of living beings through arcane means. On the upside, you get both an enchanted weapon and a new zombie minion in one foul swoop. On the downside, the enchantments, so far, have been minor, weak, and short-lived, lasting only a day or so. The Zombification of the subject, however, is quite permanent.
The death of Icewing was the last step in a series of experiments to find a source of life energy that would last longer and be able to produce stronger magics. Aparently Draconic magic and life forces combined can create permanent (or near enough for shorter lived creatures) magical effects, and the DBN had plans to move the whole Clan to a sealed Draconic Gate to siphon off the magic and create an army of magically armed undead.
Using these notes, and some help from one of the kobolds (the clan is willing to assist, as long as they get to have a piece of the DBN when he is found for killing their Lord Icewing) and a combination of personal effects to track down the DBN, a Ritualist in town was able to fashion a crude divining rod to lead the heroes to the gate the DBN was heading to, hopefully in time to stop the DBN from fulfilling his plans.