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Originally Posted by Jonathan Banks is my hero 
We could talk about hundreds of movies as great examples of this or that, but one especially good example of dialogue that's been on my mind lately is PT Anderson's HARD EIGHT. There's that great sequence early in the film where Philip Baker Hall is showing John C. Reilly how to siphon the same $150 through the casino so it looks like you're spending ten times that.
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Great example. I own that film and watch it once a week. Anderson has always been great at writing compelling dialogue. But he's also good at creating rich, complex characters by contradicting them through the differences in what they say and what they do.
For instance, at the beginning in the diner, where Sydney and John first meet, John asks Sydney for $6,000 for his mother's funeral. Sydney flat out tells him no.
Later, when Jimmy threatens to tell John that
*SPOILER* Sydney killed his father and wants money to keep his mouth shut, Sydney offers him $6,000, the exact amount John needed for his mother's funeral. Now it's presumed earlier that Sydney helped John with the funeral through a friend, but it's never clear whether or not he gave him any money...it doesn't matter though.
What's interesting about this is that Sydney is obviously trying to make up for what he did to John's father by taking him under his wing. But he's unwilling to give John any money. He could have taken him under his wing
and given him the money, since it was for his mother's funeral, someone else in John's life that has died.
But that's not all. After Sydney tells Jimmy he'll give him $6,000 but they have to wait until the bank opens, they go to Jimmy's hotel room. After a great scene of dialogue, Sydney says he has the $6,000 with him, not in the bank as he stated previously. Why did he do that? Why did he wait? It's difficult to ascertain the reason because Anderson never spells it out clearly, which is what great writers do...but he takes it a step further by linking it with his first diner conversation with John. John also wanted $6,000 but he never gave it to him, even though he wanted to make amends for his crime. He obviously can afford it, since he's practically living in a Vegas hotel suite. In other words, Sydney's character has been revealed in something that is not obviously stated, and contradicts what he's been doing for the entire film.
PTA takes this concept and puts it to brilliant use in There Will Be Blood, an incredibly written character study.