Ok...I'm still pretty new to this. Self taught for the most part...no real culinary schooling.
SO! For my wifes birthday I'm making a cake with a dragon on top. Not a huge dragon, maybe about 6 inches high. I may go a bit bigger, have to see how it develops.
My question is, will it be easier to mold it from fondant or gumpaste? I'm going to be painting it also, so that may sway the decison.
Also, with the dye paste, gel stuff. Do you water it down, before you paint with it? How does that work exactley?
Thank you all
I agree with RylanTy, about the gumpaste. Fondant will dry, but not as hard as gumpaste or in even half the time...
As far as painting, you should use the vodka or extracts because they evaporate quickly. Using water will make the gumpaste or fondant (either) melt. Speaking from experience. 
Good luck and can't wait to see a picture!
As someone who has taken figure modeling classes from Aine2 and Debbie Brown, I can tell you from experience that using a 50/50 mix of fondant and gumpaste, or fondant with Tylose, will give you a much better window of time to work your piece than gumpaste will, and will dry just as hard as gumpaste in a very short amount of time.
Welcome to CC, d3sc3n7 and 5ricecakes! 
Just be aware that when you do paint w/ gel colors - even diluted ones - they can take a loooong time to dry! I've had stuff w/ just a light coat sit overnight & still be quite tacky. Make sure you have plenty of time, first for your figure to dry & then for the paint. Although, I have found that airbrush colors (painted on, I don't have an actual airbrush) dry a lot faster..
what should you do if the gum paste starts cracking as it drys?
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