I was reading more Tolkien Journals last night (when I wasn't poking at site code) and came across an article by Bonniejean Christensen in issue #13 (also Orcrist #4, October 1970) entitled "Report from the West: Exploitation of The Hobbit".
A dramatic script was run across written by Patricia Clark Gray entitled J. R. R. Tolkien's "the Hobbit" (Chicago: Dramatic Publishing Co., 1968, 87 pp.) which claims to have Tolkien's approval (which somehow I doubt, as does Bonniejean.) Bilbo, at one point in the script, is saved by a fairy queen (who does have her magic wand at hand); at another he is saved by Thorin who stabs Smaug to death with a sword. I would not be surprised if copies of this dramatization are still around, though scarce. I wouldn't put much value on it, but would love to read a copy! [Update: Who would have thought... checked Amazon and found a copy for $3 of the original 1968 printing. They also have copies of the 1977 (or later) reprint for $3 to $6.50 for other brave souls.]
So, I hope you have cringed at least a little, but that was nothing compared to Down in Middle Earth [sic], an original musical by Fred Bluth, "inspired by the J. J. [sic] Tolkien book The Hobbit". Gandaulf [sic again, may need a bucket soon] is accompanied by three singing hobbits, Poke, Put and Scratch. They are in love with Phoebe, whom is in turn in love with Bilbo. There are also three butterflies, and some Wargs. The plot centers around the "love pentangle and the theft of the Ring from the hobbit palace". Yes, in case you were wondering, Bilbo wins the heart of Phoebe in the end (by regaining the Ring and giving it to Phoebe, thus becoming the "Lord of the Ring"). According to the article the only ephemera available was an announcement in the newspaper and a program handed out. Perhaps there is a script surviving in someone's hands, but I fervently hope not.