Ok. I've got a 500 point bunker tournament coming up on Saturday and I figure I'm going to take my dwarves this time around. I used List A in a test game against an Isengard force and just barely squeaked a win out in a reconnoitre game (got 1 mini off his side and we both broke each other before the game ended)

List A:

Warband 1: Dain
Followers 1: 3 x Vault Warden Teams, 3 x Iron Guard, 2 x Khazad Guard

Warband 2: Gimli
Followers 2: See Followers 1

24 models, 6 might, lots of nastiness.
Now this played fairly decently in the scenario except that my fight roll dice were utterly PATHETIC a lot of the time so I figured I'd try to squeeze in a banner somehow and I came up with this.

List B: Probable Final list

Warband 1: Balin w Durin's Axe
Followers 1: 3 x Vault Warden Teams, Warrior w Banner, 3 x Khazad Guard, 2 x Iron Guard

Warband 2: Gimli
Followers 2: 3 x Vault Warden Teams, 3 x Khazad Guard, 3 x Iron Guard.

I'm not a giant fan of Vault Warden teams.. elevated archers can snipe the spears..

A list I was considering was Dain, Balin and a Kings Champion leading three warbands of 5 Khazads each, 20 models, three brick hard characters and 2 banners

_________________
++ THE VANUS TEMPLE ++
Contact for commissions!

Honestly, I think both lists are rubbish. Vault Wardens aren't much good (unless you have a board that suits them), and both lists really lack models. This is quite a drastic change, but I'd prefer something like this:

Balin with Durin's Axe
6 Khazad Guard
Dwarf Warrior with Banner

Dwarf Captain with shield
12 Dwarf Warriors

Dwarf Captain
9 Dwarf Warriors

That's got thirty-one models.

_________________
"There are few left in Middle Earth like Aragorn, son of Arathorn." - Gandalf, Many Meetings

This is quite a good list you have here. However, I think that swapping the two dwarf captains with Gimli, and investing in a few more Khazads and Irons would be better than all those dwarf warriors. He DID say Dwarf ELITE army. You are right though. Vault Wardens are not good unless the terrain is suitable, and this is most likely not the case in a tournament. 25 points per team is just not worth it. (I do realize that I'm late, just wanted to add my two-cents worth)