I'll go through each question with my response. I will also be presenting an instructional video covering the final Dragon battle, which I will try to film tonight.
1) When you do get to the dragon room, you need to generate two Level 3, two Level 4, and two Level 5 monsters. Do you just start pulling cards off of the monster deck until you've found two 3s, two 4s, and two 5s, discarding all the smaller monsters that don't pertain? Or is there a rule for determining which monsters of those three levels are spawned in the Dragon Room?
1A: I'm am currently revamping the Dragon encounter rules as we speak which will do a better job of explaining everything. For now, when you reach the dragon it's not 6 monster cards, it is the 6 Dragon cards with two marked 3, two marked 4 and two marked 5 for the level equivalent. These 6 Dragon cards will be placed on the right side of the game board just like you would place monsters but in this case you place the two level 5 cards next to the level 5 section. The two level 4 cards directly below the two 5 cards and the two level 3 cards go directly below the level 4 cards. The 6 cards should create an image of the dragon. To help you place the card correctly you will see white triangles in the lower right and left corners. These triangles should be pointing at each other just like the image below
2) I understand how the "P" tile works to teleport your characters to the Town Bazaar, and I understand how the Bazaar itself works, but why is there also a duplicate "Portal to the Town Bazaar" tile with a "JC" on the back? Can the dungeon wind up with more than one portal to the Bazaar, or is it just an unintentional duplication?
2A: The reason for that is if you want to shuffle the portal into the tiles and have it come up randomly when you randomly create a dungeon. When you follow the dungeon layout card you don't need the Portal tile with JC since you know exactly when it shows up. No, the dungeon will only have one Bazaar portal in it.
3) As I understand it, if you buy a (regular, non-magical) scroll or potion from the Bazaar, none of the characters actually own it, so it doesn't consume a small colored character die like the treasure or quest items do. You just put a purple cube on the appropriate square on the Town Bazaar card, and the purple cube stands for your purchased scroll or potion. First, is that correct, or are those items also owned and carried by specific characters? Second, if nobody owns a scroll of death, and you use the scroll of death to get rid of a Level 5 monster, does that mean that none of the characters get to claim that kill for the purposes of Leveling Up?
3A: Yes, you are correct, the purple cubes tracks the Bazaar purchased items which are not carried by any character in particular, they are just in your inventory. Anything you purchase at the Bazaar is considered zero weight and does not count toward the characters equipment inventory count. These are just kept track of by the purple cubes on the Bazaar cards. Once you use them, and anyone can use them, you just remove the purple cube from the Bazaar cards. If you use a scroll that destroys a monster you get the choice of who you want to get the kill; you can pick the character.
4) Once you've cast a given spell and discarded the corresponding spell card from your hand, is it possible to re-memorize that same spell and re-cast it during the same round if your dice permit? What about during a subsequent round of the same turn? Or can each spell only be cast once per turn, no matter what? Can a spell that was cast once earlier in the turn be re-memorized again later in the same turn (dice permitting) even if it can't be cast anymore during that turn, or is a spell entirely out of play both for re-memorization and for re-casting for the remainder of the turn once it's successfully cast?
4A: If you cast a spell and then place it on the table, you can memorize it again if you have the required action dice to place on it within the same round. This can be done round after round within the turn. You could memorize a spell a number of times within the same turn or round for that matter as long as you have the required action dice to use on the spell to memorize it. The issue is you can't cast it again in the same round. So for example; you could cast sleep in the round and then memorize it again in the same round but you couldn't cast it again in the same round. This is not alloyed. But, the spell would be ready to cast in the next round. I hope that was clear.
5) I think the Healing Pool Event that I had last night was E10, but I'm not looking at the actual card as I type this. If memory serves, the text on the Event card said something like "Two rooms must be revisited before you can drink from the pool again." "Revisit" means "visit a second time," or "visit again." Does that mean you have to backtrack into two dungeon locations that you've already been to before you can backtrack to the Healing Pool, or does it mean that you have to backtrack to two "Room" tiles that you've already been to, or does it mean you have to spawn and clear two new "Room" (R) tiles before you can go back to the pool. If you have to go spawn two new "R" tiles, you're not really "revisiting" anything since you have yet to make the initial visit to either of them, but that option makes a lot more sense than the idea that you have to deliberately backtrack just to use the pool again.
5A: This just means that you must move into either two new room tiles or back track through two room tiles before you could heal in the pool tile. It could be any combination of the two but it must be two room riles you go through before you can go back to the healing pool.
6) Can you generate a random monster in the "Portal to the Town Bazaar" room if you roll one using the backtracking rule, or are monster encounters impossible in this room. I'm guessing that you still have to make the backtrack roll, portal or no portal, but what's the ruling?
6A: Yes, it is a tile that you are moving to or through so by doing this you must roll for the monster encounter when you back track through it.