When the game starts, a fly-through camera flies through the village. Don't wait too long because the Dragon is assembling to your left and will start running to your position towards the far left and top left of the village. So focus on the screen and hit the "c" button to change cameras to First-Person. You'll find yourself on the pathway and the first suspended skull in front of you. Collect it, then find the other 11 before the Dragon breathes her icy breath on you. You'll die and start again.

Keyboard keys WSAD to move, but to move much faster than the Drago, just hold down the Shift key with the WSAD key.

Collect all 12 skulls and she becomes immobile and her breath is harmless. You can then explore the village in peace.