I recently used all five I had to rarefy Zi's Dragon's Glaze.
If you haven't defeated Daimon yet, the Giant Saurian Sages that drop them are in the Rotwood Depository. I'm not sure how many different monster sets there are there, so they might not be there each time.
If you've killed Daimon, Giant Saurian Sages are only found in The Black Abbey, and there are waaaay too many different spawns there. I've only seen the Frostwyrm + Sages set maybe twice in all my levelling sessions.
And yes, despite being the saurian's hide, it's in fact a rare drop. (Just skin the thing and be done with it, huh?)
Still no screenshots. Urgh. You have no idea how much this is killing me. I'm worried that since the error codes have changed, maybe the DD app was already updated and is still not working properly. 10 days with not so much as a peep from the Pawn Community (they're usually quick to at least say "we're looking into this") is also concerning. BUT, they also haven't posted anything saying that xbox 360 sharing is no longer being supported. Surely they'd mention that on Capcom's website if nothing else.
I don't see why they would abandon the 360 - the Xbox 360 community is still active (the 360 Ur is about 25 generations ahead of the PS3) and new players are coming every day. If the game servers are still up, c'mon, fix it. Fixitfixitfixit.
There, frustrated rant over. The report won't die, but the image quality might... 
If it IS fixed, I would be much obliged if anyone playing would like to take scenic shots of anything past Duskmoon Tower - anything. Preferably with no pawns in the shot so I can use it with any group, but that isn't really necessary. Anything that looks interesting.