This Alien Shore by C.S. Friedman
I had actually read this several months ago, as part of the Great galbinus_caeli Book Loan of ’06, but for some reason forgot to log it.
This was a very cool story, with Space Dragons, altered humans, political intrigue, a schizophrenic heroine and all sorts of other good stuff. I probably would have had more to say about it had I struck while the spaceiron was hot, but alas I did not.
I remember that I read this in between (and a little bit simultaneously with) two Vernor Vinge books and got the two universes confused in my head at times.