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Has anyone used the 1st edition dragon creation rules from the Erebor book in 2nd edition? Do they work as is or do they require some modding and tinkering?

I think that, for the most part, they would work but I cannot say if they need to be modded at all. I hope someone has a more definitive answer.

They do require a bit of modding, but they can still be used to help guide you to create a Dragon adversary. One thing to consider is that Might didn't exist in 1e and any but the weakest Dragon is going to be Might 3. Use this to sense-check your Dragon against the Nameless Thing tables at the back of the Core Rulebook.

There are some examples of Dragons in the 2e Source Books (in particular Tales and Realms), so you can find 2e versions of most of the Fell Abilities in the 1e Dragon tables.

Thanks for the suggestions and I'll take a look at the dragons in Tales and Realms as guide.