It took me much shorter than I expected to have full event processing and dialog. You can talk to the VX kitty NPC like any good old fashioned RPG NPC. See the latest screenshot for the dialog- it's nothing special visually, though.
The script for that entity looks like this:
// WeaponBirth Test NPCs
// This NPC remembers the player
test_kitty_npc:
1.examine
show_message("Hello, world!");
show_message("It's a good day today, isn't it?");
set(a,1);
2.examine if a = 1
show_message("Hello, again.");
set(a,2);
3.examine if a = 2
show_message("...What is it?");
set(a,3);
4.examine if a = 3
show_message("I have to go now, see you around.");
delete(); // Deletes the event temporarily
It's pretty simple, this NPC will say different things as you keep talking to it with the OK button (Z) until it eventually vanishes from the delete command. I plan on making the dialog box smoother next where it's an actual drawn dialog box graphic and the text scrolls onto the dialog, and you can set the name/face of the person talking.