Ah, Krug! Welcome to the Mongoose forum!
As far as I recall, the probably best (game)books to look for "dwarves in action" would be
Shadow on the Sand (second half of the book; they enter the story at about paragraph 374) and maybe
The Jungle of Horrors, where you meet a dwarven innkeeper at paragraph 188. A bit of browsing from those paragraphs onward might get you a bit of an impression of Magnamund's dwarves, though there's not really that much on their background ...
I'd dare to bet that the number one source would be
The Fall of Blood Mountain, as Ordovician already mentioned, but that's damn hard to find. (Okay, Amazon.co.uk has two in the Used Books section (at least recently), but you'd have to pay £124.75 - or even £219.95, if you prefer :? - for them, and somehow I doubt that would be worth it ...)
Another source - though I wouldn't go for it, as I don't care much for them - might be the
Legends of Lone Wolf novels. Book #9,
The Tellings, features the story of how Banedon got the
Skyrider and his dwarven crew. As far as I'm concerned, that story doesn't either Banedon nor the dwarves (they appear rather ... daft) justice, but that's only my opinion, of course.
(Just in case you don't know: You can go to
Project Aon for free internet editions of the gamebooks (up to #15 at the moment), if you don't have them yourself.)
Oh, and don't forget: It's more fun to carouse with a Lakuri pirate than a bunch of (legally correct) Kai lords ... :wink:
(Yeah, I'm probably going to need an ally in some situations, I admit it.

)
Paido