Another what was that Book Thread

Two books from my childhood that I vaguely remember. They were in the childrens section of the library, but would propably be classed as young adult today. The time period was early eighties.

The first was about a girl living in a town with her family. They are regarded as oddballs, and at one point it is stated that they settled there due to three simultanious flat tires. The family has its own religion, with an afterlife called Capri. The girl (I think) goes to this afterlife to retrive her beloved Grandfather.
Oh, and the opening of the book features her and an accomplice disguised as a giant to grab books from the high shelves in a used bookstore. (Rare and valuable books were shelved there)

The second was about a young man trying to free a country from a dragon. One of the cities he visits is polluted by the dragon’s presence. As a result, everyone there is rich, as there is nothing else to do but work (the ouside being so dismal), and the inhabitants smoke cigars to mask the smell. In one scene the protaginist goes to a resturaunt and requests a glass of water. The room falls silent, the waiter produces a complex set of equipment, sieves, filters, and burners and proceeds to use it to render a glass of brown sludge drinkable.

Any Ideas?

First book is Figgs and Phantoms, by Ellen Raskin.