The people in the veldt cave refer to a dragon, but it isn't THE dragon. and it's in the forest I mentioned earlier. That fellow knows Disaster (which lays a ton of status fun on you), Sneeze, and Ultima. But you get a fair amount of exp and MP from the fellow, as well as a random, but very welcome Economizer. You can also steal ribbons from them, I believe, if you have big enough balls to play games like that with such a monster.

And I too level up that way as well. But I don't know if it works that well... If you were to do it without an experience egg, it'd be a waste of time, and very dangerous. But if you have one (I have three from wagering tintinabars at the colleseum), it would be of benefit to do that, I believe. Since all the characers in your party would gain the benefit of the double exp, and the share that is usualy reserved for the fourth person.