User summary: This was the game book that was included in the boxed version of the basic game. It could be purchased separately for the retail price of $5.00
The blue book cover actually has an illustration of a red dragon on a pile of treasure about to be attacked by a plate mail archer and a blond-haired, blue-robed wizard carrying a wand and a torch.
The game book includes 4 pages of spells, 12 pages of monsters, and a 5-page game adventure. The four character classes were fighting men, magic-users, clerics, and thieves, and the four character races were men, elves, halflings, and dwarves.
The illustrators are not credited. Internet sources name David C. Sutherland III as the cover illustrator.
Note: There were small variations among the first seven printings. The first printing dated 1977 had a production code of F116-R and made several references to Hobbits instead of Halflings.