Level 32 right now, only one Talisman to go to collect all 8. I'll take on the Red Dragon tomorrow at some point when people are actually on, as it seems not very busy this time of night.
What character are you using? I've just started hunting for these talismans, but I haven't been successful yet. This is the point of the game where things get hard and it doesn't help that I use the sorceress who has low damage output and takes forever to charge MP.