Using 8th edition rules. The only magic item I don't know anything about is the 'banner of wrath.' So it ended up being the razor banner, giving them AP attacks. The mage got the Lore of life, and shield of thorns.

A 3 is rolled for the grudge table, so all dwarf heroes hate all elf heroes.

I forgot to make a unit for the shadow warriors. So they are just really super sneaky. They went behind the top hill to the left.

The dwarfs get the first turn. They have the option of getting an extra 4'' move as per scenario, but don't use it so as to keep their battle line in order. Rather than shoot with the thunderers they move up, knowing that once they open fire the elves will get to shoot back.

The elves can't shoot or charge yet. So they get into position, angling to hit the thunderers with their cavalry and to move out of an easy charge range from the ironbreakers. The invisible shadow warriors can't go over the central line until the dwarfs do, so they move between the mine and the bottom hill.

Magic: 2,3
Casts earthblood with 3 dice. 1,2,3+1=7, spell fails to go off and magic phase ends.

With turn 2, the dwarfs roll to see if the miners come up. They do, appearing right behind a unit of archers. The mine shaft, with it's initiative tests of doom, aptly protected the elven combat flank from being threatened. The dwarfs declare no charges, and instead move up. As the line had thus already been crossed, the thunderers open fire on the silver helms.

To hit (4+): 5,4,5,2,1,1,1,1,1,5,5,3,1,4,3,
To wound (3+): 6,3,6,4,5
Armor Saves (4+): 4,6,4,1,2

Two silver helms fall out of their saddles, not enough for a panic test.

Charge! The silverhelms go into the thunderers, who stand and shoot. Dwarf craft means no stand and shoot penalty.

To hit: 2,4,1,2,1,4,5,4,2,1,4,1,2,5,4
To wound: 5,1,1,2,3,5,6,4
Armor saves: 5,6,1,4,3
Two more silver helms fall.
Panic: 3,3=passed

Magic: 2,4 (6v4)
The mage first uses 3 dice to cast earthblood on the spearmen. 5,3,2+1=11. It goes off and the dwarfs save their dice.
The mage then casts shield of thorns on the spearmen. 4,2,1+1=8.
The dwarfs dispel with 4 dice. 5,4,1,4+2=16. Dispelled.

Shooting:
10 archer shots at the ironbreakers, needed 4's to hit.
To hit: 5,4,5,6,2,6,3,6,2,2
To wound (5+) 2,3,2,3,1,4 (0 wounds)

10 shadow warriors into ironbreakers, needed 3's to hit
To hit: 2,3,4,4,4,5,4,4,3,3
To wound: 3,2,4,1,4,1,3,5,1
AS (3+) 5 (0 wounds)

Close Combat:
The blade of darting steel, as per an oldhammer site I found, says that the user always hits.
To hit: auto
To wound (4+): 2,5,4 (2 thunderers dead)

The unit champion gets 2 attacks.
To hit (4+): 1,4
ASF: 4 (2 hits)
To wound (3+) 3,2 (1 thunderer dead)

Horses
To hit (4+) 3,6
To wound (5+) 6
Armor Save (6+) 1 (1 thunderer dead)

Thunderers:
To hit: 2,5,6,6,3
To wound: 6,1,2
Armor Save: 3 (no dead)

The silverhelms easily win combat, but the thunderers have a full rank.

Break test: 6,6

Thunderers are well outside of the BSB, so they break.
Thunderers: 5,2=7
Silverhelms: 6,2,3=9 destroyed

Then onto the other combat. The elves charged in, so they get a total of 16 attacks.
To hit (4+) 3,5,3,1,4,3,3,4,3,3,4,2,4,5,2,5
ASF: 6,1,5,3,3,6,5,2,1
To wound (5+) 4,2,2,1,2,5,1,1,3,4,4
AS (5+) 1
Parry (5+) 6 (0 wounds!)

The dwarfs attack back with 11 attacks.
To hit (4+): 5,3,6,6,5,3,5,6,3,3,6
To wound (4+) 4,6,1,6,5,4,5
AS (5+) 1,5,2,1,4,2
Regeneration (5+) 5,2,2,1,1 (4 dead)

The elves lose combat by 5 and are not steadfast.
Break test: 5,2=7 (flee)
Elves flee: 6,5=11
Dwarfs pursue: 1,5=6
Elves get away

The dwarfs start by declaring a charge with the warriors against the fleeing spearmen. The miners and the ironbreakers move up.

Warriors: 4,3+3=10''
Spearmen: 1,4+5=10''
The elves get away, and the dwarfs only go 4''

The elven turn starts with rallying the spearmen. 2,2=4. They rally. The silverhelms turn around but stay far away from the multitude of dwarven axes.

Magic: 3,3 (6v3)
3 dice to cast earthblood on spearmen: 5,2,6+1=14. The dwarfs let it go.
3 dice to cast thorns on spearmen: 3,5,2+1=11.
3 dice to dispel thorns: 5,3,2+2=12. Dispelled.

Shooting:

10 shots against warriors from 1st unit of archers
To hit (4+)1,5,6,1,6,3,1,5,2,1
To wound (5+) 2,5,1,4
AS (5+) 2 (1 warrior dies)

10 shots against warriors from shadow warriors
To hit (4+) 3,2,4,2,2,5,6,6,3,2,
To wound (5+) 6,3,5,2
AS (5+) 6,3 (1 warrior dies)

10 shots against miners
To hit (4+) 1,2,4,2,5,3,6,6,5,1,
To wound (5+) 4,1,4,5,4
AS (5+) 3 (1 miner dies)

The dwarfs start by declaring a charge with warriors into spearmen and miners into archers. Spearmen hold (have to) and archers flee, even though they will run into the warriors and die. Holding would mean that the miners could overrun into the flank of the spearmen. Warriors needed a 12 to make it, they go 11''...for a failed charge.

Miners: 5,4=11''
Archers: 1,1=7''. And they were exactly 5'' away, meaning that it was still a failed a charge!

Ironbreakers charge the shadow warriors, who (being invisible) easily flee to safety. They go forward 2''.

Elven Turn 4

The elves start by rallying the shadow warriors, which is done on an 8. No movement is done, so onto magic. 1,3= 4v3.
4 dice to cast thorns on the spearmen: 3,5,5,2+1=15
3 dice to dispel: 5,5,6+2=18

Dwarven turn 5

The dwarfs double charge the elven spearmen. Looking to save elven lives, the elves flee.
Warriors: 2,1+3+6''
Miners: 5,6+3=14''
Elves: 4'' buffer from the miners. 6,6+5=17''.

The elves easily get away, and quite readily flee the battle field.

Final outcome

High Elves: 195 points for destroying the thunderers
Dwarfs: 646 points for destroying the archers and chasing away the spearmen

Victory to the dwarfs!

Thoughts

And with that, game 1 of the Grudge of Drong is complete. It did feel like it was heavily in the favor of the dwarfs, even though the high elves got lucky in breaking and running down the thunderers. What really sunk the elves though was that their shooting came out to be 30 bows, which isn't all that hot against dwarfs. It just doesn't thin down the numbers like it was needed. That, and they couldn't get thorns off, which would have been really helpful in cutting through the warriors. Given that the warriors only had light armor and shields, it could have thinned them down with a little luck.

Still, the game was lost for the elves in the list building stage. Auto hits when you are hitting on 3's with re-rolls isn't that great for the noble. That and the elves only had 1 combat block of 20 elves, when the dwarfs were rocking 3 combat blocks (not counting thunderers). That was going to be nearly impossible for the elves to break.

Still, at the end of the day, very few elves actually died. By my count, the dwarfs only killed/wounded 19 elves. In return, the elves killed/wounded 18 dwarfs. But while both sides were bloodied in an equal proportion, the field belonged to the dwarfs.