Basically it boils down on how much the PC's can influence events by changing the motivations of the NPC's. If the PC's feel that they can not change things by talking, then they will do so by action/encounter. Once you establish that PC's can influence the game and change NPC reactions, then they will most likely be willing to do so.
The more rounded your NPC's, the better you will be at roleplaying them; but to save time, all you need to know what the NPCs wants. Each NPC will have a certain motivation for doing what they do in order to get what they want. Once that is accomplished, they may move on to another want. For example, an NPC may want power; specifically the position in the government. He negotiates, lies, cheats, steals, extorts, murders, plots etc. to gain that power. Once he achieves that goal, he may now change his motivation; now he wants to keep that power, he wants to increase that power etc. His motivation changes and he finds ways to thwart his opposition or secure his position.
The PC has the ability to change the outcome of these events. They may cause the NPC to focus on the PC's as possible allies or adversaries depending on their interactions. PC's could direct the NPC in another direction, such as focusing on marrying into the ruling family and establishing a legacy, seeking out an ancient artifact, etc.
Drama between PC's follow the same design. As long as you address the PC's motivations (they wrote those 3 page backgrounds for a reason) then they are more likely to pursue those motivations. If you ignore their motivations, most likely they will ignore the NPC's as well. The closer you bring PC's to their motivations/backgrounds to each other, the more drama you will get when their worlds start to collide.
A final crumb of advice I can give is to embrace the sandbox style in these situations. Allow the PC's to generate the opportunity for drama. For example, a PC may want to acquire mining rights in providence (after getting clearing out a forgotten mine). His inquiry into the land is thwarted by a Dwarven Lord who makes claim to the Mine from his ancestors. The two try negotiate but it falls through. Threats between the Dwarven Lord and the PC increase and the Local Duke brings both parties to his estate to discuss the matter. Each makes a dramatic appeal on the rights to the mine and the Duke must choose who to grant the rights. The Duke is inclined to give the rights to the PC because of the help they provided driving off those nasty hobgoblins months ago but sovereign law sides with the Dwarf and his family. He might suggest the PC's look into the heritage of this "Dwarven Lord"....and you got yourself a hook for adventure.






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