Dialogue
Upon double clicking an NPC your output window shrinks and a dialogue output appears with a preview of the mob's icon and what he said. Clicking his portrait will either end the conversation or move it along to the next stage.
Before:

After:

Requested Opinions:
1) Should NPC interaction be initiated by double click, or should I allow an alternate 'action' button of sorts, which will interact with the nearest NPC (taking into account which direction you're facing)?
2) I'm struggling with the idea of allowing personalized responses to NPCs - such as three or four options as to what you can say, much like in Bioware games and the like. While I like the system, I can't think of a pretty way to implement it that wouldn't lag. I'm trying to reduce the number of on-screen HUD menus because of lack of client-side processing. Any ideas for this, or should I just not bother at all?
3) Any other opinions you'd like to share. ^^ This is the first showing of my skin, for one. Look neat?
End Note
Thanks all for reading the post, I know I can be longwinded at times and these screenshots may be a little on the large side. Happy new years eve to all, and hopefully you remember everything you do tonight!