Does it interfere with the outcome of the game if you slaughter the dwarves in the stout mine? I can't seem to get the king to activate the trolley and I am getting pissed, plus I think they might be hiding some cool treasure...I did take that mavin sword oath in the crypt, does that have anything to do with killing npc's?

also, I can't seem to give the shroud to the dragon, do you have to get him to land, if so, how do you do it...?

Slaughter at will. It won't effect your game, although the creators probably intended to originally.

I think, however, you have to do something to activate the trolley, OR there's a specific keyword you have to give the King in order for him to activate it for you. I can't remember now.

You won't be able to give the shroud to the Erathsmedor until the end of the Dragonspire dungeon, and it's not always easy to do there either.