So how is the challenge going? Here's my (Renikas) contribution, finished just now and I aim to ship it this weekend.
This is the dragons den, filled with jewels and precious things. Embroidery in red and golden silk on dark blue wool. I have stitched some small pieces of red cloth on the dragons head, knee and elbow in order to create more of a 3D-effect and then covered it with silk in split-stitch. The jewels are glass beads and then I outlined some artefacts with gold thread.