Dracarys question

By Reighar, in Rules Questions

I am new to the game, though I think i have got a good grasp of the rules. I was playing with some friends and a question came up about the Dracarys event. This is how I interpreted this, and I am looking into clarification if I was correct.

During the game, I was playing nights watch. On the board I had John Snow with Longclaw attached, Ghost and a few other cards. My friend playing the Targ deck had dragons out, though from a previous battle had cards knelt, so I was going in for an easy win. When I used ghost to stealth Drogo, he played Dracarys.

here is my interpretation of what should have happened. When he used Dracarys it took Ghost to 0 strength. Now since he was attacking with 0 strength obviously he wouldnt have won, with the exception I also had John Snow participating as he participates in all nights watch attacks. Once the combat had ended, since I could not get ghost back to atleast 1 strength, i knew the card was lost.

My friend stated that Dracarys ended the combat and killed the character before the battle began and that in turn would prevent Snow from assisting or attacking.

I was wondering if anyone could help me out and tell me if Dracarys is a card that prevents attacks and kills imediatly or is a card that once the phase is over kills the target if it is not above 0 strength.

Hopefully I explained it correctly, I keep reading the card and I still think according to the rules that combat would still continue with ghost being 0 strength and dying once the phase ended.

If I understand the scenario correctly:

1) Jon Snow is standing and Ghost is attacking.

2) Your opponent has a standing Dragon and either 1 Gold or a standing Faction card.

3) After you declare a (military) challenge with Ghost, he plays Dracarys!

Yes, Ghost is dead immediately from the effects of Dracarys! and Jon is no longer participating since there is not an attacking NW character. The challenge is effectively, but not technically, over.