First battle report I've written! I think everything is accurate, but there has been some guessing / fudging based on my pictures and memory.

Dwarf Army:

19 GW Warriors, FC

Thane with Warriors GW, shield Ro Resist and Stone

14 Hammerers, FC

Runesmith with Hammerers, shield, Mro Balance, Ro Spellbreaking, Ro Stone
NB I know this rune combo is illegal. League rules let me take +10 pts in magic items for each game I win
 
    Since I won my last match against skaven, my runesmith can have 85 points of runic items

15 Quarrellers, GW, FC

Cannon, Ro forging, Fire

Gyrocopter

VC Army:

21 Skeleton warriors

21 Ghouls

15 Grave Guard

Corpse Cart w/ Wizard 

Vampire Lord

5 Dire Bats

Decide to play watchtower scenario. I roll high, and decide to begin holding the watchtower. I deploy my quarrelers inside. Hammerers and Warriors deploy into the valley between two hills, while the cannon deploys for a vantage on the right hill. Gyro goes on the hammerers left to protect flank.

VC Deploys grave guard in front of the watchtower, with skellies on my right. Ghouls and Corpse cart line up on my left, hiding behind the watchtower so my cannon cant get at them. Dire Bats deployed just opposite my cannon.

VC Turn one:
Movement:
Grave guard charge the quarrellers in the watchtower. Quarrellers stand and shoot, taking out 4grave guard. Bats swoop in toward the cannon.
Ghouls and skeletons stumble forward.

Magic:
Wizard tries raise dead, dwarfs dispel on a roll. 

Shooting:
VC can't shoot. 

CC: Quarrellers fail their fear test. Gore guard take down 7 or so quarrellers with KB. Scared quarrellers manage to fall one or two gore guard.
    Quarrellers pass their break test being steadfast in the tower.

End of VC turn 1 movement.

Dwarf turn 1:
Movement:
Hammerers and warriors march forward. Gyrocopter swoops down and lands just short of the forest.

Shooting:
Bats are just out of grapeshot range, so cannon takes a shot at skellies. Roll two 2s on artillery dice, and don't hit a model. 

CC: Quarrellers fail second fear test. Gore guard massacres the remaining force with KB. Watchtower belongs to VC.

VC turn 2:
Movement:
Bats charge cannon, corpse cart charges hammerers. Skellies angle around the watchtower, ready to flank-charge hammerers.
Ghouls stumble around without doing anything useful.

Magic:
VC players throws all dice at dance macabre on the skellies. Runesmith uses his Ro spellbreaking. 

CC:
Hammerers fail fear test (sigh). Corpse cart does 2 or 3 wounds from impact, another 3 or 4 from 8 attacks. 
    Frigthened dwarfs get one wound on the cart. Stuborn Hammeres pass break test. Bats destroy the cannon crew. 
    There's 120 points down the tube.

End of VC turn 2 movment.

Dwarf Turn 2:
Movement:
Warriors flank charge skellies, Gyro moves in to the flank of the ghouls.

Shooting:
Gyro steam cannon melts 5 ghouls. 

CC;
All dwarfs pass their fear tests (yes!). But only the runesmith manages a wound on the corpse cart. Corpse cart rolls a woeful 3, but manages a wound
    or two on the hammers. Combat continues. GW warriors hack the skeletons to pieces, after losing two of their own. 
    Skeletons reform to face their doom.

VC Turn 3:
Movement:
Bats fly forward toward warriors exposed rear. Ghouls stumble around some more.

Magic:
Dance macabre is cast on bats. Dwarfs fail dispel roll, and bats charge into rear. Raise dead gets dispelled.

CC:
Corpse cart gets 7 attacks, and finishes off 4 hammerers. The remaining hammerers and RS take down the corpse cart. Bats and skellies take out
    three  dwarfs, but dwarfs fight back with a serious vengeance and finish off the skeletons. Many bats go down to unstable. Dwarfs take the free
    reform to face the bats.

Dwarf Turn 3:
Movement:
Runesmith decides discretion is the better part of valor, and runs for the hills. Gyro flys around the ghouls.

Shooting:
Gyro's steam cannon melts 4 or so ghouls. Why won't these things panic?

CC: 
Bats can't get a wound on, and the warriors finish them off nicely. Free reform puts the warriors ready to charge the watchtower.

Dwarf turn 3, after movement

VC Turn 4:
Movement:
Ghouls try to get in charge range of the last hammerers.

Magic:
VC's wizard was on the corpse cart, no magic. 

CC: No CC.

Dwarf Turn 4:
Movement:
Warriors charge and storm the watchtower. Gyro flies around to get another shot at ghouls. Runesmith runs a little further.

Shooting:
3 Ghouls melt at the gyro's steam cannon.

CC:
Thane challenges the vampire lord, and gets a wound on him. Vampire lord completely wiffs. Grave guard takes out three dwarfs, and the dwarfs
    fall two gore guard. Tie combat.

Dwarf turn 4, after movement. Can the dwarfs take the watchtower?

VC Turn 5, Dwarf Turn 5 and VC turn 6:
Movement;
Ghouls charge the remaining two hammerers. Hammerers flee in response. Ghouls can't quite catch up.

CC: Vampire lord gets two wounds on the thane. Thane fails 2 +5 up re-rollables. Such is life. 
    Thane gets two wounds on the lord. Lord goes down. Grave guard rolls insanely, knocking out the last nine dwarfs. 
    Thane fails break test, and turns tail.

Game called, VC victory for holding the tower.

Remaing dwarfs fleeing in shame.

Analysis:
What can I say? Two failed fear tests on the quarrellers didn't help much. Losing 15 models in two turns is hard to recover from. I actually think the dwarfs fought back fairly well. Had the gore guard not got insane rolls at the end, I might have been able to take the tower with a 3 attack thane and no Vampire lord to worry about. I got every point out of my characters. Had this not been a watchtower game, I might have actually won considering I still had roughly 350 points still on the table.

All in all, not disappointed. I was really only one or two rolls away from winning that game, even with losing the cannon after it did virtually nothing. Both opponent and me agreed it was a close, bloody game. Just the way Warhammer should be.

A few things I did learn.
1) Need more hammerers. 15 isn't going to cut it, even in a 1200 point game. I have to go a least 20 from now on.

2)Reconsidering my cannon strategy. Due to the deployment, my opponent was able to hide any viable target from it's LOS (taking out that corpse cart with a decent shot could have changed this game considerably.) A GT would have fared much better in this case, as it would have had a chance at the bats.

3)Runesmith in hammerers is stupid. I really need to put a lord in there for synergy and more killing.

4)Gyro is holding it's own in 8th. It took the ghouls out of the game.