Omg severe text adventure game flashback. Weird how you can instantly recognize the phrasing and gameplay 35 years later.
Playing this on the C64 in 1985(?). And I do remember the randomness of it all, being locked up in a goblin dungeon, and then Gandalf / Thorin / Smeagol would randomly show up in the dungeon without explanation to how they got there. And how easy it was getting stuck, because a vital character was killed or you lost a needed item.
Fun but frustrating, I think I never completed it.