Most of the cards in Traps and Terrors don't work the same way other challenges do. They tend to break up the narrative by just throwing out a trap with no explanation. I usually add something like "You stumble across a Tomb and..." so they make more sense.

I've considered using them in some kind of Dungeon crawl option but never put it together. Maybe putting several challenge cards on an adventure space in order of color to simulate going down into a dungeon/cave/etc...The easier cards would be on top for the upper levels and the tougher challenges would work for the lower levels. The trap challenges would fit in perfect in a setting like that. Another possibility would be to place these stacks of Dungeon cards on the Red spaces and you would have to work through them to get to the Dragonlord(or whatever variant/expansion badguy it is). I have a couple of problems that keep coming up. How many turns should this take? Extra treasure rewards?

Any suggestions?

Don't have any suggestions, but you have hit close the problem seen by me and mine where T&T is concerned. It does break the narrative, and those cards are hard to justify outside of an actual "location" instead of a monster/creature/enemy like most challenge cards. They weren't liked very much, but we've only run into a few in one game; more play is needed.

The notion of a dungeon is only one possible "location" concern for those cards. Perhaps that notion can be expanded... though I haven't the slightest idea how without the option becoming unwieldy.

Perhaps if you draw a trap you could immediately draw another challenge to face if you defeat the trap. This could represent the monsters lair being trapped. Maybe even drawing a card of the next color up for added peril and reward? Just brainstorming...

That's at least a little better, though most of those traps are mechanically constructed and no suitable for all types of creatures in the encounter decks. There's also the compound danger and compound reward involved. T&T inserted into the standard decks (or with other expansions) might be too diluted... meaning some would get that doubled danger/reward and others wouldn't. Some might like that randomness, some wouldn't.

Good point. Random unexpected game changing things could happen with the method I mentioned. I guess its just a matter of how much your group enjoys that. I think I'll work up a variant that uses the traps to signify finding a dungeon( meaning a tomb, caverns, ancient abandoned city,etc...) It will add some random chaos but if you know that when you start then I guess that's your thing.

That's the great thing about Runebound. If you want to try a new variant its easy to do. If you don't like it, try something else!

I'll post my idea once I'm done.

Look forward to seeing what you come up with. Indeed, it's a fairly rich and flexible game.