I myself recommend somewhere in "untamed wilds". Not too dangerous (no skeleton badgers or anything like that) but still dangerous animals like giant scorpions and yetis.
As for personal dwarf (Choosen), make him a bookkeeper/broker/something like that and give him only social skills, with one being comedy.
Although all the challenges are cool (I think Im gonna start one), I think having one limits the playstyle, forcing everyone to play same.
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