I read about it in a gaming magazine shortly before it was released on the Sega CD. I remember the artwork for DL being on the cover, and the article really talking the game up. I ended up buying a Sega CD and Dragon's Lair because of that gaming subscription.
I remember my mother had to have the "Electronics Boutique" gaming store special order the game as they didn't have any copies. When it arrived in the store, my mother insisted that I test out the game on their system. The TV was high and mounted to the wall, and the guy helping us handed the Sega controller over the glass counter.
I just kept watching Dirk fall through the bridge and get grabbed by the tentacle monster. I had no idea how the game worked.
The guy helping us was familiar with it since he was much older than me and had probably played it on the arcades, so he taught me how to press the sword button only once, and then up or right to climb up out of the hole and get through the castle gate.
My mother is the type of person that is really impulsive, and will return things for a refund if she thinks it's faulty. She had previously returned my Intellivision, Philips CD-i, and my Nintendo Game Genie because either I wasn't very good at the games or --in the case of the Game Genie-- she thought the product could damage the main system.
So she's threatening to walk out without buying it, but after the continue screen counted down the intro started up.
..."DRAGON'S LAIR! A FANTASY ADVENTURE WHERE YOU BECOME A VALIANT KNIGHT, ON A QUEST TO RESCUE THE FAIR PRINCESS FROM THE CRUTCHES OF AN EVIL DRAGON!" ...
I kind of remember my mom shutting up when she saw the look of complete awe on my face, and she bought it and the Sega CD.
It was a pain in the butt for my father to try and figure out how to get my Sega Genesis to "mate" with the Sega CD add-on. I remember a metal plate was screwed into the underside somehow and the edge connectors needed to match up perfectly. Also, there was a second power brick that was plugged into the Sega CD.
So we finally get it all hooked up and we power on the system and !!! Nothing.
The red LED light next to the Sega CD just blinked. The Sega half of the combined systems worked, but the CD part seemed... busted. We ended up bringing it back to the store. They couldn't figure out what was wrong with it either, and gave us a replacement. My father was able to connect this new one up much quicker since he had done it once already, and when I saw the Sega CD loading screen I was elated.
I ended up bringing my system over to a friend's house for a sleepover, where we took turns playing Mortal Kombat and Dragon's Lair. Every time I played DL I got a little further, and around 4am when most everyone else had fallen asleep, my friend Bill was the only one who witnessed me slaying the Dragon. It took me forever to figure out to hit the "sword" button to grab the magic sword, as I was always trying to press "right" since it was flashing and I was used to pressing towards flashing objects.
I've never seen an ACTUAL DL cabinet in the wild. There was one multi-game MAME machine at the "Golf and Games" in Warren, MI that had Dragon's Lair on it (you selected games from a roulette style menu). I put in a quarter and was pleased that I could still beat DL, although the moves required for the arcade version were slightly different than those used to beat the Sega CD version. Furthermore, there were a few scenes in the arcade version that I had never played before.
On this multi-game machine, once the game was beaten it went into a weird "Dragon's Lair Lost Levels" thing where the animations were low quality, and the scenes were connected in a way that didn't make sense. You would watch Dirk go through a door, but then he'd start at the same room again and watch him die? And then he'd start at the same room again and he'd go through a different door. It was pretty worthless and seemed like a failed experiment or an afterthought that was poorly added to the multi-game version.
In my opinion, Dragon's Lair is a bit of a funny animal, but I definitely want one in my collection someday.