Oldblood Carnosaur LA Enchanted Shield Sword of Might Glyph Necklace War Drum Scar-Vet Cold One LA Shield Scimitar of the Sun Resplendent Skink Priest Diadem of Power 1x Dispel Scroll Skink Priest 2x Dispel Scroll 18x Saurus Warriors with Spears Standard Musician 20x Saurus Warriors Standard Musician 10x Skink Skirmishers 4x Terradons 6x Saurus Calvary Full Command War Banner 9x Saurus Calvary Full Command 9x Chameleon Skinks 3x Salamander Hunting Packs 2498 pts.
Its a personal preference, but I find the champions in the Saurus Cavalry to be sorely over-costed for just the additional attack. The only time I would include them is if I plan to have a character in the unit and I might want the champion to take the challenge. Given your character selection that may be the case, but it isn't you might consider putting those 20 points (one cav unit champion) elsewhere (spears for the second Saurus unit perhaps). Also, are those skink priests level 2? The one with the diadem needs to be if he plans to hold two dice over to add to your dispel pool. Finally I would propose dropping two saurus from the 20 lizard unit and turn them into champions for the two Saurus units. I find the champions in the blocks to be far more useful. Other than that I think it look like a hard hitting list.
The diadem specifically indicates that the wizard may save two of his own unused power dice. I read that to mean it has to be the dice he generates, not from the general 2 power dice all armies start with.