While this is not a tutorial on Drama, some of the tools use by film production can be used to help you design conversation. Instructional Designers would also understand the term "Storyboarding", which would be useful in this aspect. I would recommend you look into the open source screen-writing software known as [CELTX] to see if you can make it work for you. CELTX stands for Crew, Equipment, Location, Talent and XML, and can be used as a manager for your special props (e.g. a +5 Holy Avenger sword), non-player characters, and all their conversation threads (also known as scripts) in the story.
[Note: In NWN, scripts refer to the small pieces of computer code that allow you to customize anything from NPC actions to environment effects. In CELTX, scripts refer to the conversation of the performers.]
According to the [Wikipedia Entry on CELTX], the software offers several unique features to screenwriters and anyone involved in pre-production. Of these, game and instructional designers would probably find Element Tagging and Storyboarding to be most useful:
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