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I am working on a baby dragon character. I have the Rifts Ultimate Edition 2005 book. Can you tell me what other Palladium books have information about Dragons? Our GM allows us to use any stats and info on any character as long as it's a Palladium book. I want to get as comprehensive a character as possible. Thank you for any info you can give!

Depending on what you are looking for in so far as information:
"Dragons & Gods", this is a Palladium Fantasy title with Rifts conversion notes. Some of this may be in the original "Conversion Book 1" as it was cut when they did the revised edition. This also has info on Dragon Bones and weapons fashioned from them.

"Psycape" adds another Dragon type not found in D&G, RUE, or RMB. It also touches upon the Cult of Dragonwright.

Rifts Main Book (original not RUE), England, and quite possibly Japan all have Dragons from D&G, and RMB IINM has the same basic info as RUE though a different set of dragons.

One of the Seige on Tolken books (not #1/2/4/6) IINM might also flesh out Dragons and the "shadow dragon" ability (I know it is mentioned in #6, but details are lacking here that likely can be found in the appropriate SoT book, but I could be wrong because I haven't actually read the book in question). SoT#6 though has examples of some dragons and their behaviour w/re to the CS vs Tolkeen war. So that might also be useful.

"Atlantis" & IINM "Splyn Dimensional Market" may have some useful info tid bits.

"South America 1" specifically the Cult of Dragonwright might also have some information on Dragons

"Juicer Uprising" has a Juicer class utilizing dragon blood, might have some information that is useful.

Palladium Fantasy 2e main book IIRC (along with several others) also has market cost on dragon parts.

Rifts: Lemuria introduces several new types of Dragons.

The skills available to dragon hatchlings is different between the original Rifts Main Book and the Rifts Ultimate Edition, though I believe most of the general notes are the same.

Although I don't think either are technically dragons, they're close enough to be interesting: Draconids in Phase World and Deevil Dragons in Dyval.

Rifts England has my fav dragon. Chaing-Ku