I am having the same problem (also a dwarf). I have zero clue when it comes to modding/scripting. This is the first time I opened the toolset, and I find it baffling. After much dicking around with it, I finally figured out how to get into the DLG file. I found the places in the conversation you mentioned where it checks the PC race. There appear to be two: one for (tall races) and one for (short races). Both of them use AND instead of OR in the condition. Should I change the ANDs to ORs in both places? I have multiple characters going, and I am wondering if I'll encounter the same problem when I hit this point with my human. Also, I'm having trouble saving the changes in the toolset. It looks like it wants me to be in a "module" instead of how I got to the conversation part (it says I'm in a temp folder). What am I doing wrong? Total n00b. Thanks!