Eh, meh. Hope no problem if I give you some opinions, honest ones. First, maybe some transformations which I think you should definitely read (just short stories, an hour at most):

http://www.furaffinity.net/view/8148163 (Eyes of the Forest by Drekian)
http://www.furaffinity.net/view/17629453 (Black Blooded by Splyced)

This concept of yours, of course, is just an outline, thus I am not attempting to judge writing quality or composition here, you might be able to do it compellingly if you wanted to. But the arch the outline shows for me isn't something really exciting.

Most importantly I see no real point for the story, there is no real story arch or conclusion, just a transformation with a few details added for some spicing. But that still leaves it bland and empty for me. Even the events leading to it aren't really passing the bar. There are much more interesting ways to do this. Realism or mystical depending on your context, the environment which you put the story in.

This outline for me looks like something leaning towards realism. Then go for realism. Think a bit, what would happen for real? Sort of a cliché too, but wouldn't suddenly officers from all known and lesser known three-letter-agencies swarm around the site, hungry to bisect the poor dragon alive in a lab? Maybe don't go so real then, diverge into some alternate history, whatever, but invent something plausible. One dragon appearing in our current world just wouldn't exist for too long... Unless maybe if he could pretend himself to be a real ambassador of an alien world, then the power behind could hold authorities back, drifting onto the fields of some very murky diplomacy with lots of stress for the dragon and whoever standing with him.

So the point is, have a coherent world around the idea, and of course a story to tell, something more than just spicing up a bit the idea of turning into a dragon.

Hope no problem I told my opinion, I see you are rather left to your own without anyone giving you any feedback. If interested, I also have an unpublished transformation story draft, starting out in our real world, drifting towards an alternate history. I can send you that in private note (I also have several other mid-length novels up, no transformation in those, though).

Thanks for the input, even on such an old posting. now to address points.

Back when I outlined this it was literally a stream of thought I was having and had to put down or risk losing. Lots change since this posting.

The overall idea was to go in depth into what it really meant to be 'human' and ultimately show that ones physical body does not make us who we are but the great balancing act of morality/ethics and bias/opinion that is the human condition.

another factor was our impact on Earth and how we really need to be better tenets to this great beautiful planet we call home. this later part never made it into the outline above because as i said this posting represented an idea that I was working on even as I waited for feedback.

now specifics.

I moved the location of the metamorphosis into a cave in the woods. Also at the point the outline ends, only the dragon and his friend know of his existence and our trying to keep it that way at the moment. (this backfires but that would happen later.)

As two the idea that Gov agencies just abducting the dragon? I hate this cliche with a passion. If one looks eat actually biologists and the like, science has come a long way from the days of Darwin. Scientist studying animals actually take great pains to not harm the animal they are studying because the primary focus now a days is psychology and behavior, not what makes their biology tick. there are also many ways now to see inside animals without killing them. regular and 3D MRI/CAT scans, X-rays, ultrasound, the list goes on. Their is absolutely no need to kill something to understand how it functions. The only time a Nacrospy is done is if the animal has died by natural causes, stress brought on by human interference, or because someone other than a scientist has intentionally killed the animal.

Those ideas are nice, but they definitely need more focus! One you admit, of course, the other, the relation of physical body and humanity I think doesn't really show. An outline, of course, and showing such depends more on little details, how the person lives the change, so it possibly didn't have too much chance to convey this.

(Actually that's the central focus of my transformation story, I am going to send it you by private note then)

For the agency stuff, what you say has rationale, but those are over animals well known to us. Even if a new specie popped up, it is not significant in the scale of human societies, as most often (for the larger stuff) it is just another bird or lizard in an area full of other birds and lizards, filling in a niche of their environment.

The problem with the dragon in a realistic setting is that it looks very alien and it is intelligent. The "very alien" alone might not warrant the attention of such agencies provided it has no much chance to affect the society.

However something looking like a large fictional dragon would! The problem is that humans have strong cultural ties to this shape, which could very much upset things, uncertainty. Religious people could freak out. Others could start a religion. Balances in the society could tip over causing unrest. If it is just a normal animal otherwise, agencies would likely meddle in to contain the discovery, while allowing scientific research to progress normally. They would be just a defence mechanism, the powers (politics) would appropriately just act as proxy, letting other scientists (in fields of society and culture) plan out how the knowledge is revealed, how the new strange animal is introduced to the public avoiding some massive unrest.

The intelligence is the trait which would wreak havoc here. Humankind right now assumes we are the only race in the solar system (and possibly even the universe) having this, the capability to use language, to have culture, to build a civilization. The sudden appearance of a non-human intelligent creature is very much something we are not prepared to handle, especially if it just popped out of thin air, on Earth itself. The three-letter-agencies would be there to act as a defence mechanism against an unrest which the sudden revelation of this could cause! Maybe "to bisect the poor dragon alive in a lab" was indeed an exaggeration, but the dragon would certainly be constrained and would have a very hard time to stay sane.

The most immediate concerns would be whether there are more of the thing, possibly roaming free. Again, something which could cause serious upset (just think of conspiracy theories relating aliens). The very first concern would be safely containing the anomaly at all costs (and that could end badly for the dragon, if they settled for the need of extracting information from him on the whereabouts of other dragons). If it could be settled that there is only one such creature and it is under control, then the pressure might loosen. They (I don't refer the agencies only, rather the whole governance system behind including connections with relevant sciences) could then devise means for coping with the situation, and things could go many directions from here. Releasing the dragon might, after many years of preparation, eventually happen, but maybe not, things like law may very much intervene. Like wielding arms, what is permitted, and how the dragon's body fits. The regulations relating flight, that they wouldn't be able to fit the dragon into the system set up for aircraft and stringent safety rules. Things like that.

Intelligence and dragon shape together just makes things a lot worse from the perspective of acceptance, and even powers of some religions could seriously object for letting it free (they could cooperate with governmental agencies in this, to contain the dragon), and some more fanatics may even try to assassinate it. As I told above, the shape alone is a serious upset, combined with intelligence it is a killer. It is easy to expect cults, even a whole new religion rising around the dragon, in our today's world in severe turmoil, many could end up seeing the dragon itself as sort of a god (even if he doesn't want it). Or at least a very significant influencer, videos of whom could bring the Internet to its knees (even if he doesn't want to have videos of him at all).

I might have drifted a bit far, but I hope you get it. This is a very complex matter, and there is a good reason for the governments (through the three-letter-agencies) to intervene, to maintain the stability of the society (which is on muddy soil anyway even without that). Not that I agreed, but this feels the most plausible to happen. We would be really really cautious even with revealing a radio transmission indicating intelligent life somewhere very very far out there...

For the age of the story, well, you didn't really have anything newer, and I thought you would like to hear something of the thing. These are my opinions, and true, I am a little bit perfectionist. Not the best guy to meet if one wants some pats on the back! :D