Bethesda already revealed that there'll no longer be that awkward (imo) face close-up effect or time freeze whenever you enter dialogue with NPC's.
I'm curious how this could work though, since there could be a ton of things that might mess it up. What if either one of the people in the conversation gets attacked (or if you could freely move around, what if the npc does something as gravely stupid as walking into a trap or off a cliff)?
I'm sure the devs could create a system that would work well, but hopefully they could show us some actual gameplay soon :D
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Well, that's the thing. Of course the NPC would stop talking if combat is initiated, or a trap is triggered. It's realistic. I'm sure Bethesda won't make it so quest NPCs are in constant danger. Most will be in towns or encampments in the wilderness, safe from harm. Maybe one or two in dungeons, needing help. Even then, there's plenty of time to talk to them after you take care of the monsters.
In Oblivion, you couldn't talk to NPCs while they were in combat, either, so it's not a big problem.
http://www.youtube.com/user/Terrafuror <--- My Youtube Channel The Universe has a great sense of humor. The trick is learning how to take a joke.