I ran it as the very last 2e game we ever played. I tweaked it a bit (mainly bumping up one of the main monsters). It was ok. Note, I don’t run very many published modules, especially 2e modules. I’ve run several 1e modules and no 3e modules so far. Though I have played in several 3e modules.
That being said, yes, it has some good material in it. The dungeon has some great butt-kicking situations. It has a lot of useful ideas on how to make an adventure tough on high level characters. I managed to kill several characters with it. I especially liked the cowardly wizard in the dungeon. Its an idea I’ve really taken to heart when playing other wizards, either as a player or a DM. Nothing sucks more than a wizard who surprises you, blasts you for 1-3 rounds then runs away before you get the chance to do anything.
For 3e, of course, the coolest thing you can do is bump up some of the many goblins in the dungeon. Throw in some mid-level fighters and barbarians and rogues, and they become even more deadly. The dungeon itself is an old dwarven fortress, now defended by goblins and infested with monsters. It is almost impossible for the characters to fight their way in. The module stresses that the place is well defended. The defenders are organized and have battle plans. They are led by a highly intelligent human, after all.
The module also introduces some new rules, which help the goblins. These new rules are similar to Battle System type rules for units of goblins. They basically use the law of averages to determine how many hits a group of goblin archers can get on a given character. When 50 goblins all shoot at Y character, they hit X times. That plus heavy use of cover, elevation, concealment, poison and overwhelming numbers makes the goblins a powerful force.
My own sessions went like this:
After several failed attempts to get inside, the players finally decided to polymorph/shapechange into goblins and infiltrate the place. That worked a lot better than walking through the front door and killing everything that tried to stop them. The “kick in the door” method never got them past the first room without at least one character dying.
Once they got inside, things went rather smoothly and quickly There were a few encounters that gave them a hard time and we never really explored the rifts between the goblin clans. There was a nip-and-tuck at the end, as I wanted to get it finished and play some 3e games, so I can’t really comment on the ending.
Some of the player comments from the first couple of games were:
“This is just ridiculous!”
“There is HOW MANY!?”
“Jesus, how are we supposed to get into this place!?”
And my favorite:
“I’m going to change characters. This character (a long time favorite of the player’s) could get killed in this place. He shouldn’t be doing this.”
So it’s a tough module. 3e would make it even tougher. As I just mentioned, add some class levels to the goblins. Also, if you used the 3.0 rules for cover, it would greatly increase the goblin's strength.