question 1 Do you encounter the space after defeating a dragonscale?
question 2 And If so is it only the turned face up cards that you encounter?
The rules seem to contradict themselves to me.
They say to only a dragon scale, the space or character in the space.
Then go on to say this: If a character encounters the dragon scale, he must draw one card from the deck that matches the dragon scale, even if there are already one or more cards in the space. The character must resolve all of the cards in the space following the normal rules (cards must be resolved in order of their encounter number, Enemies with the same encounter number add their Strength and Craft together, etc.).
This may result in a character resolving an Adventure Card from the main game before he resolves the newly drawn card if the Dragon Card has a higher encounter number. When a character encounters a dragon scale, all of the instructions on the space are ignored. In other words, the text on the space has no effect on the character or cards whatsoever