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I ran the encounter twice, once for a level 4 party, once for a level 1 party.
Level 4 party did ok. I had to tweak the adventure to convince the PCs to advance. I said the Svirfneblin had the whole upper passage set to collapse and after a few rounds they sprung the trap. The heroes had two rounds to run for safety. They didn't. Acrobatics checks were needed to get out. Failure meant loss of healing surges. When the PCs got to the bottom of the stairs the Svirfneblin all had readied actions and attacked. Brutal fight, but lots of fun.
For the level 1 party I used the same collapsing tunnel trick, but this party noticed the trap and then ran like hell for safety. The collapsing passage didn't really hurt them but the readied Svirfneblin sure did. Near TPK for the level 1 party. Ended with 2 dead, 4 very badly wounded.