ok, im cool now.
when you open your new project file (which you get after decompressing ff8), you will see the projects name in the list box to the left.
click it to open the folder and you should see a data or ff8 folder appear, now keep clicking ff8>data>field>eng> (i think) now you get a big list of folders, pick one
they are all locations, eg bg (balamb garden) FH (fisherman horizon), now open that folder and youll see folders for all the locations in that area (aa, ab, ac ,etc) now open one, youll see a list of files in the box in the bottom left corner, find the one with a *.msd (dialog file) extention, d' click it to open it and viola!
you should see dialog on the right.
now after editing it, (if you wanna see your changes in ff8), save and recompile ff8 data files and fire up ff8