@thedoctar: Miscellaneous items (slime jam, bat wings, etc.) are a new addition to the Mardek series. If you keep them, they can be combined to make better items in Mardek 3 (at forges, for example).
For anyone having trouble with the zombie dragon (or any other boss), try using Zack's Crescendo Slash. It can be learned from the Boneslicer, which can be found in the catacombs or bought in one of the shops in Cambria. Crescendo slash does an extra 25% damage every consecutive time you use it, making it powerful in long battles.
@Sirk: If you're going to beat the cambrian arena, you have to do it before entering Moric's battleship. It's also easier to fight the zombie dragon before you lose the rest of your party. I believe the shaman mentions that you should finish everything else before you teleport to the battleship.
For all you people having trouble beating any of the Mardek games, Pseudolonewolf has added an excellent walkthrough to Kongregate. Try checking the walkthrough before complaining or giving the game a bad rating.
 "MARDEK RPG: Chapter 2"){kind=icon}
 "MARDEK RPG: Chapter 3"){kind=icon}