What are Balrogs?:
Balrogs are corrupted Maia spirits created by Eru (Illuvatar). Called the Valaraukar by the elves, to the men they are called, Balrogs, "Demons of Terror" Controlled by the dark lord Morgoth, they were his fiercst captains, especially Gothmog, Lord of the Balrog's and High Captain of Angband. When the holocaust of the "War of Wrath" was over, and Melkor banished forever, many believed that the demons were gone forever, however. In the 3rd Age of the sun, the dwarves of Moria, delved too deep and awoke one of the sleeping demons. The Balrog of Moria slew 3 kings of Dwarves and allied himself with orcs and trolls. Until his was thrown down on the bridge of Khazad-Dum at the hands of Olorin (Gandalf).
How did the dwarves come about?:
In the beginning, before the awakening of the firstborn of Illuvatar (elves), Aule, the Vala wished to create beings of his own, and in his own image. Thus he fashioned the 7 fathers of the dwarves. Then, asking Illuvatar to breath into them the flame imperishable, Illuvatar denied him, not allowing any to come to life before the elves. So, taking pity on Aule, he commanded the dwarves to be hidden in the mountains until the elves awoke. The Dwarves, unlike the elves, do not go to Mandos when they die, but rather go to live with Aule in his mansions in Valinor.
Who kept the NINE?:
Sauron, after ensnaring the 9 kings with the rings of power controlled them utterly and became the Nazgul, Sauron's most leathal servants. Of the rings, the three were kept by the elves to whom they were given: (Galadriel, Elrond, and Gandalf >who recieved it from Cirdan, who recieved it from Gil-Galad). Of the seven, three were consumed by dragons, and the others Sauron keeps. The nine are held by Sauron to even enchance his grip on the Nazgil's will.
What Heppened to the Ring Bearers?:
Once the one ring was destroyed in the Sammath Naur (chamber of fire) at the hand of the creature Gollum, Frodo, and Sam were rescued by Gandalf riding Gwaihir the Windlord. They were taken to the houses of healing in Minas Tirith. Upon returning home, a ship arrived out of the west and riding to Mithlond, (The Grey Havens) Frodo, joined by Gandalf, Elrond, Galadriel, and Bilbo boarded and sailed to Tol Eressa, within sight of the Blessed Realm, allowed to live in peace until death comes. Galadriel, although, being one of the accursed Noldor, was allowed to dwell in Tol eressa because she passed the test of the Valar and denied the One ring when Frodo offered it to her.
Why were the Noldor "Cursed"?:
This answer lies with Feanor, the most skilled of elves. Using his creative skill, he forged three perfect jewels called the Simarils. Melkor stole them from him and slew his father, Finwe. Cursing Melkor, he named him Morgoth, enemy of the world. Disregarding the Valar, feanor gathered much support and made ready to leave Aman (The Blessed Realm) in persuit of Morgoth. He led the Noldor (his people) to the haven of Aqualonde where, not getting the support he wanted, commandeered several of the Teleri's ships that were docked there. Many of the Teleri were slaughtered needlessly. the Noldor sailed to the Helcaraxe (The grinding Ice) which is the only connection of Middle Earth to the Blessed Realm. Mandos himself appeared before the Noldor cursing their actions at Aqualonde and warning them, they would never again know peace as long as their persuit of the Simarils continued. This was espceciall true of the seven sons of Feanor, who swore an oath to recover the Simarils or die trying.
Can Gandalf really die?:
The wizard you know as Gandalf the grey isn't human at all, although he may appear otherwise. Bearing the true name "Olorin" he hails from the undying lands of Valinor. He is in fact an Angelic spirt sent to middle earth to contest with the will of Sauron. Because the inhabitants of Middle-Earth couldnt possible bear to see a maia spirit in it's true form, Gandalf and the other four wizards took on the guise of old men with walking sticks and staves. They also wore tall, pointed hats which symbolized their office. When Gandalf sacrifices himself on the bridge of Khazad-Dum in Moria, he falls with the Balrog to the very bowels of the mines. And it is written that they battled to the very peaks. Gandalf finally threw down his enemy but in turn passed away himself. Now, his physical body did die, but his spirit was sent back to Valinor where he was sent back to Middle Earth by Manwe to complete his task. He was also promoted in the wizard order and became Gandalf the White (as opposed to grey). To answer the question, in that way no, Gandalf could not "Die". It is even written that while he was on ME as Gandalf the white, no mortal weapon could hinder him.
