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I was waiting for others to post, but this is the way I read it:
Surprise Round: Daiy and Martin use ranged attacks against the druid, hit unless the thing has a flatfooted AC of over twenty, do a bit of damage. Chuck moves into position for a full attack. Neshi and Yorrick apparently do nothing. The Fire Elemental and the Druid are surprised and thus do not act.

Round 1 (on initiative now): Daiy hits the Druid with her greatsword, dealing lots of damage. The Druid (freely?) casts Flaming Sphere, hitting Daiy. Neshi casts Magic Weapon and moves into striking distance. Martin casts Grease, causing the Druid to fall prone (also, since Fire Elementals have no flight speed and no specified floating ability, I would assume they do need to have a footing just like normal creatures, but we can talk about that later). Yorrick uses leading the attack and charges the Fire Elemental. Chuck full attacks the druid.

Round 2: Daiy attacks the Fire Elemental again. The druid gets up - one move action. He then moves the flaming sphere to Martin's square - another move action. His round is over. The Fire Elemental attacks and hits. Neshi attacks the druid. Martin casts Enlarge Person on Yorrick. Yorrick uses Stone Bones and attacks the druid. Chuck full attacks the Druid.

Round 3: Daiy charge attacks the Druid (through grease... could be an issue). The Druid casts Gust of Wind on Chuck, knocking him prone. This is where it gets fuzzy. The Fire Elemental is apparently dead at this point. I do not believe Neshi has posted his actions for this round. Martin then cast Glitterdust, to no avail. Yorrick has not yet posted his action for Round 3. Chuck full attacked while prone.

Round 4: Daiy used her Lay on Hands ability to heal Martin 8 points. The Druid's action has not yet been posted. The Fire Elemental is still assumed to be destroyed. Neshi's actions have not yet been posted. Martin will cast Daze on the druid if he's still alive. Yorrick's actions have not yet been posted. Chuck's actions have not yet been posted.