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Ok, so I'm a dope...
I decided early on to try to edit a conversation -- the 1st one with Geroditus -- in ResEdit. Bad idea. Bad, Bad idea. Real Bad.
To fix the mess I made, I tried to edit in mascot -- which seemed amicable enough to the idea, but when played, the changes didn't take. I then tried deleting the coversation in ResEdit, which it seemed to do. But it was still there in Mascot (I am 110% certain I'm working on the same file). I thought I could recopy the original resource to the new level I'm working on, but that's not an option.
Any other ideas?
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I've never tried editing a conversation in ResEdit, so I'm not sure, but something similar happened to me. I would change the level and save it, but when I opened it again, the changes were not there. It also copied my level rescourse about 700 times into the same file. When I upped the memory requirements for Mascot, it seemed to help.