Yann has a set of wonderful suggestions here:
http://www.scirra.com/forum/dialog-system_topic47748_page1.html
for building a dialog system. Because I'm ignorant, I'm having a hard time getting them working, though.
Yann suggests setting up a 3D array, and the array contains value RANGES. I.e., 0-20.
I don't know how to test a global variable to see if it fits in a range.
I also feel like I'm doing something wrong, because I can't get my options to display correctly from the secondary array. Here's my attempt so far:
https://dl.dropbox.com/u/7066157/dialog.capx
"After that it's just a matter of calling the dialog, parsing the first part of the string to see what match the parameters of your player (might have to be more exclusive than what I did) and then displaying the corresponding sentence. And using the end of the string for possible answers. etc."