"Dragontales" was a collection of short stories, edited by Kim Mohan, assistant editor of Dragon magazine, and published in August, 1980 (Mohan became editor-in-chief of Dragon with issue #49 (May, 1981).
Dragontales (August, 1980). Wraparound cover illustration by Mike Carroll (credited in Dragon #46, pg. 73)
Dragon magazine's inaugural editor, Tim Kask, made it a point to include short fiction (a decision some readers failed to appreciate). Although pieces varied in quality, they succeeded in fueling the imagination.
"Dragontales" includes ten short stories, by both male and female writers and artists (some of whom would gain significant acclaim). The stories range from straight swords & sorcery to humorous or more introspective tales.
The Wizards Are Dying by John L. Jenkins
Illustrations by Jim Holloway
A party of adventurers band together to stop a lich. AD&D game fiction, with multiple references to AD&D character classes, races, spells, and monsters.
Reviewed by Michael Curtis, here (March 7, 2011).
Dragon's Fosterling by Ruby S.W. Jung
Illustrations by Mary Kay
A young maiden is captured by a dragon, and plots her own escape. Traditional fantasy tropes, re-interpreted through a feminist lens.
Reviewed by Michael Curtis, here (March 10, 2011).
Out of the Eons by Gardner F. Fox
Illustrations by Kevin Siembieda
A swords & sorcery tale concerning Niall of the Far Travels, whose previous and subsequent exploits were published in Dragon magazine (as reviewed on Grognardia).
See also the Gardner F. Fox completed library, which includes the Niall of the Far Travels anthology.
Reviewed by Michael Curtis, here (March 27, 2011).
Sir George by Carl Parlagreco
Illustrations by Wayne Geehan (I think this is his website)
A darkly humorous take on the story of Sir George and the Dragon.
Parlagreco also wrote:
"Bowmanship Made More Meaningful" in Dragon #58
Reviewed by Michael Curtis, here (May 3, 2011).
Black Lotus Moon by Tom Moldvay
Illustrations by Peter Laird (of later TMNT fame)
A swords & sorcery tale set in Biazaan (spelling close to "Biazzan" in the Empire of Thyatis on Mystara, as discussed in this thread on the Piazza).
Tom Moldvay was editor of the soon-to-be-released 1981 Basic Set.
Reviewed on Thoul's Paradise, here (November 5, 2015).
Honor Among Thieves by Roger Moore
Illustrations by Greg Holder
A tale involving two thieves. Another piece of gaming fiction, heavily rooted in AD&D.
Moore's first article for The Dragon was "Meeting Demogorgon: Last great acts of defiance and cowardice" in The Dragon #36 (April, 1980), cowritten with Jeff Spitler.
He also published "Cloud Castles" in Dragon #39 (July, 1980), became a contributing editor with issue #45 (January, 1981), joined the editorial staff with issue #75 (July, 1983), became editor with issue #115 (November, 1986), and was founding editor of Dungeon magazine (1986).
Ice Dream by David F. Nalle
Illustrations by Chris Roth
A short, thought-provoking story, told in the style of a cautionary fable.
Nalle also created the Ysgarth FRPG and wrote "Blood Tribute" in Pegasus #6.
In the Darkness, Hunting by Janrae Frank (this is her website)
Illustrations by Darlene
A tale of a warrior woman who must portray herself as a man. One of the best stories in the anthology, and years ahead of its time.
"In the Darkness, Hunting" was later included as part of a short story anthology.
Frank also wrote "Amazons of Antiquity" in Sorcerer's Apprentice #16 (1983) and contributed to the "Citybook II" Port 'o Call" (1984) supplement.
Just Call Me Albert by Martin Mundt
Illustrations by William Loebs (now a comics legend)
A humorous tale of a cleric in search of a specific object for his patron. Another piece of gaming fiction, heavily rooted in AD&D.
Birth of a Wizard by Marie Desjardin
Illustrations by Mike Romesburg
Although one of the shorter entries, "Birth of a Wizard" is exceptionally well-written and another one of the better stories in the anthology.