Dialogs
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Firstly, there are two methods for creating dialogs. As the quest page has briefly documented, there is a 'static' dialog tree which allows for a fairly simple conversation to be defined. Additionally, you can create 'dynamic' or script controlled dialogs.
Static vs Dynamic - which to use.
For most dialogs, the static dialog will be simpler and sufficient. It will define a pre-planned conversation tree that can branch either by user selection, or the use of 'preconditions'.
Dynamic dialogs will use script to determine how the conversation progresses instead of a pre-planned tree. In the standard game, nearly every stalker has the option of having 'cool info' that more or less randomly gives a response when you ask if they know anything interesting. This uses a 'dynamic' dialog with script 'randomly' deciding which response the stalker will give.
Static Dialogs