The Dragon Quest is actually worth doing! All DQ item requirements were lowered to 5 and the Dragon Orders can be exchanged as follows:
The rest of Dragon Quest is unchaged. As a reminder, to start any Dragon Quest you need to complete "Love of Dragon" quest from Mr. Yeh in West Archosaur.
Then you can pick DQ quests from any Dragon Quest Director (most likely the one in Archosaur). Dragon Quest requires you to ask different people around Perfect World about dragons and do favors for them - either killing mobs or giving them 5x of a random DQ item of given level.