It takes place in a place called Volstov, which clearly doesn't exist outside of the dreams, but you'll have that from time to time. The dragons were made by magicians. I never had the patience myself, but I understand it took quite a bit of time and effort. We have a Dragon Corps, but, as I said, all are metal and run on magic. They're relatively useless during the day, but during the night, it's different.
I guess that might be fairly surprising. For both of them, but I'm sure both will recover.