I've moved my Delvers to level 2. I mean, they have earned it, but I made a few tweaks to the XP rules to allow it to happen; they had been level 1 for three sessions, and that seemed like enough for them to have earned their way to level 2. Progression will slow from here, so I'm okay with that. Level 2 in this game is the rough equivalent of level 3/4 in B/X, so I'm fine with this being a level they sit at for a bit. They have some power, and they can take some damage. I still think a dragon with a decent breath weapon could take the whole group in one round, so they aren't THAT powerful. Heck, a level 4 fireball type spell will wipe them out with some failed checks.
Still, they're not bad.
Also, here's my really sketchy looking map (because the picture is sketchy - and I did it in pencil so it's a sketch).
The link to the actual play document is over to the left under the Hack'D & Slash'D resources, along with the most recent tweaks to the core rules, which get updated in real time.