…and I don’t want to be the first one to try and interpret what JOG meant.

@Melian: While I did not read a confirmation of the ‘cleaning’ practice, it was not a condemnation of it. It does seems much safer to insert new dialog in a continuous block is possible and avoid having alternating new and official entries throughout the topic.
@JOG: Thank you for the clarification. I suppose I misread you old post, and as so often happens read into your words and explanation for my question rather than recognizing what you were actually discussing.
I do not like to tamper with original dialog except to insert my own dialog. The only occasion to change it would be to correct content or typos as has been done with the Unofficial Patch. I might alter the filtering to make a hole so my dialog might peak through, but I would not dream of moving it. It therefore seems unlikely that the circumstances would arise that ‘unclean’ dialog (as you mean it) would occur. I am not certain why a duplicate of an original entry would create a problem unless we are speaking of a ‘copy’ created rather than a ‘new’ entry, (and even then I am not certain). I will have to puzzle over that a little longer or test it in a way that is easier for me to see. However, I will accept the wisdom of moving such an entry away from the original.
This seems to reinforce the idea that cleaning the asterisks from the original entries is up to the modder’s discretion. I have heard some leave them to avoid the annoying error messages when loading the mod in the editor. However, my tests indicate that it still affects how two different mods, inserting dialog at the same point, will dovetail.
As I have stated before, LGNPC is fairly unique in the degree to which it impacts official dialog. Most certainly, different LGNPC installments will share insertion points on some topics (some generic topics only have one or two entries). Rather than try to avoid the impossible we will embrace the horror and insert new dialog at the same point in each topic. The following conventions will be observed:
CODE
* All asterisks (‘flags’ that the entry has been changed) should be cleaned from original dialog entries on either side of the insertion point, unless the filtering of that entry has been altered.
* Never alter the order in which official dialog entries appear.
* In general, the insertion point will be just below the last official entries filtered by NPC ID and just above the first broadly filtered (generic) response.
* New entries will not be made at the very top or bottom for existing topics unless otherwise impossible. If there are less than two official entries filtered by NPC ID requires insertion at top.
* New topics should be chosen with care that they are unique (and not too general) that they do not prevent official topics from displaying. AddTopic will be used when new topics are introduced, but not with official topics.
* No official dialog entries should be altered for content or deleted. If a problematic entry exists, its filtering is altered to decrease the likelihood or eliminate the possibility of being displayed. A ‘duplicate’ of the entry may be created as ‘new’ then edited and filtered as appropriate.
* All additional dialog entries should be identified in the results section with the name of the mod that added it. Any changes to the filtering of official entries should be similarly identified and include the reason for the change.
* When ‘importing’ dialog from another mod that may still be run along side the new mod do not merge the dialog. Instead cut and paste the dialog as ‘new’ entries to generate info-IDs that are different than those in the original mod.
Greetings are another matter. Presumably they are roughly sorted into categories that not all modders utilize (LGNPC mods are guilty of this). This lack of consistency makes it more difficult to predict how two different mods will work together. Fortunately, most modded dialog is filtered for NPC ID, but conflicts are certainly possible. Modders like to place their greetings high (Greeting1 for instance) to feel confident that another mod (or the official dialog) will not break their work. This increases the likelihood that their mod will break another mod or official quests. The latter is a real concern. LGNPC mods have done that in the past. Recent installments are more sensitive to how our additions affect existing quests. Dialog is filtered for individual NPCs to see what official dialog and greetings already exist for them and preserve those entries if they are important. But that does not mean errors are not made. Better is if we place greetings as low as is possible.
While it may sound like I am making a unilateral decision that dictates to other modders how they should organize their dialog that is not my intention. Still, I am happy if you think so since it is the best way to provoke further discussion on this topic.

I cannot control how other modders have/will structured their dialog, so it is still possible that conflicts between mods will occur. These conventions are in the interest of making LGNPC compatible with each other. The common insertion point in particular since this makes load order a reliable predictor of how two mods will perform together (assuming that each mod cleans out the asterisks). An omission in my earlier tests was to see how a ‘cleaned’ mod interacts with a ‘non-cleaned’ mod when they each insert dialog at the same point. I will perform such tests if only to understand how the dialog string might be broken. It cannot be controlled, but at least it might make it easier to recognize real conflicts between mods.
Another important safety tip has to do with deleting a new line of dialog out of a block of new entries. Doing so will disrupt the previous line/next line references and cause the new entries below the deletion point to be move to the bottom. To safely remove a single entry move it well away from any new dialog and delete (and clean around) it.
For anyone curious about how I have come to this conclusion my tests result follow:
Results of deleting a single (or consecutive) line of new dialog from a block of new dialog.
I describe where the block (X1 X 2 X3) was inserted relative to official entries, and where the new entry (always X2) was moved before deleting. ‘Clean’ trials are those where the original entries on either side of the insertion point were cleans of the ‘*’. In all instances where the entry X2 was moved the original dialog affected was cleaned of ‘*’ except for the insertion points for non-cleaned trials. To save space, I will show from left to right the entries as they appeared from top to bottom. ‘---’ represents an original entry ‘-1-’ represents the original top or bottom line and ‘-2-’ represents the original second from top or bottom line.
*Inserted at top / X2 not moved:
top: X1 -1- -2- -3- --- --- -2- X3 -1- bottom
top: X1 -1- -2- -3- --- --- -2- -1- X3 bottom (cleaned)
Both are unacceptable.
*Inserted near top / X2 not moved:
top: X1 -1- -2- -3- X1 --- --- --- X3 -4- bottom
top: X1 -1- -2- -3- X1 -4- --- --- --- X3 bottom (cleaned)
Both are unacceptable, but non-cleaned is worse.
*Inserted at bottom / X2 not moved:
top: --- --- --- -4- -3- -2- -1- X1 X3 bottom
top: --- --- --- -4- -3- -2- -1- X1 X3 bottom (cleaned)
Both are acceptable, but this is a special case where new dialog cannot sink any lower.
*Inserted near bottom / X2 not moved:
top: --- --- --- -4- X1 -2- -1- X3 -3- bottom
top: --- --- --- -4- X1 -3- -2- -1- X3 bottom (cleaned)
Both are unacceptable, but non-cleaned is a little worst.
It is not a good idea to delete new dialog without first moving it way from other new dialog that you wish to keep in its current order relative to itself and the official entries.
*Inserted at top / X2 moved to top of new dialog block:
*Not performed–would be the same as inserted at top / X2 move to top.
top: -last- X1 X3 -1- -2- -3- --- --- bottom
top: -last- X1 X3 -1- -2- -3- --- --- bottom (cleaned)
Both are very unacceptable.
*Inserted near top / X2 moved to top of new dialog block:
top: -1- -2- -3- -5- --- --- --- X1 X3 -4- bottom
top: -1- -2- -3- X1 X3 -4- --- --- bottom (cleaned)
Both are unacceptable, but the non-cleaned is a little worse.
*Inserted at bottom / X2 moved to top of new dialog block:
top: --- --- -3- -2- -1- X1 X3 bottom
top: --- --- -3- -2- -1- X1 X3 bottom (cleaned)
Both are acceptable, but this is a special case where new dialog cannot sink any lower.
*Inserted near bottom / X2 moved to top of new dialog block:
top: --- --- -4- -2- -1- X1 X3 -3- bottom
top: --- --- -4- -3- -2- -1- X1 X3 bottom (cleaned)
Both are unacceptable, but the non-cleaned is a little worse.
*Inserted at top / X2 moved to bottom of new dialog block:
top: -1- X1 X3 -2- -3- --- --- --- bottom
top: X1 X3 -1- -2- -3- --- --- --- bottom (cleaned)
Cleaned trial is acceptable, the non-cleaned trial could break things for mod.
*Inserted near top / X2 moved to bottom of new dialog block:
top: -4- -1- -2- -3- X1 X3 -5- --- --- bottom
top: -1- -2- -3- X1 X3 -4- -5- --- --- bottom (cleaned)
Cleaned trial is acceptable, the non-cleaned trial could break things for master.
*Inserted at bottom / X2 moved to bottom of new dialog block:
*Not performed–would be the same as inserted at bottom / X2 move to bottom.
top: --- --- --- -3- -2- -1- X1 X3 bottom
top: --- --- --- -3- -2- -1- X1 X2 bottom (cleaned)
Both are acceptable, but this is a special case where new dialog cannot sink any lower.
*Inserted near bottom / X2 moved to bottom of new dialog block:
top: -3- --- --- --- -4- X1 X3 -2- -1- bottom
top: --- --- --- -4- X1 X3 -3- -2- -1- bottom (cleaned)
Cleaned trial is acceptable, the non-cleaned trial will break things for master.
Moving the new entry to be deleted may give satisfactory results if the conditions favor it (such as already having the new dialog block at the bottom of the tree). But as a general practice it should be avoided. Certainly there are occasions where it is necessary so do so under those circumstances that will give acceptable results.
*Inserted at top / X2 moved to top:
top: -last- X1 X3 -1- -2- -3- --- --- bottom
top: -last- X1 X3 -1- -2- -3- --- --- bottom (cleaned)
Both are very unacceptable.
*Inserted near top / X2 moved to top:
top: -1- -2- -3- X1 X3 -4- --- --- bottom
top: -1- -2- -3- X1 X3 -4- --- --- bottom (cleaned)
Both are acceptable.
*Inserted at top / X2 moved to bottom:
top: X1 X3 -1- -2- -3- --- --- --- bottom
top: X1 X3 -1- -2- -3- --- --- --- bottom (cleaned)
Both are acceptable.
*Inserted near top / X2 moved to bottom:
top: -1- -2- -3- X1 X3 -4- --- --- bottom
top: -1- -2- -3- X1 X3 -4- --- --- bottom (cleaned)
Both are acceptable.
*Inserted at bottom / X2 moved to top:
top: --- --- -3- -2- -1- X1 X3 bottom
top: --- --- -3- -2- -1- X1 X3 bottom (cleaned)
Both are acceptable.
*Inserted near bottom / X2 moved to top:
top: --- --- -4- X1 X3 -3- -2- -1- bottom
top: --- --- -4- X1 X3 -3- -2- -1- bottom (cleaned)
Both are acceptable.
Inserted at bottom / X2 move to bottom.
top: --- --- --- -3- -2- -1- X1 X3 bottom
top: --- --- --- -3- -2- -1- X1 X2 bottom (cleaned)
Both are acceptable, but this is a special case where new dialog cannot sink any lower.
*Inserted near bottom / X2 moved to bottom:
top: --- --- -4- X1 X3 -3- -2- -1- bottom
top: --- --- -4- X1 X3 -3- -2- -1- bottom (cleaned)
Both are acceptable.
Moving the new entry to be deleted to either extreme (and I expect any point well clear of new dialog block) will result in a clean removal of the unwanted new entry without scrabbling the order of the new entries relative to each other or relative to the official entries. The sole exception to this is if the block is at the top. In that case, the line(s) to be deleted should be move lower first. Another method suggested by Kateri is to export the dialog, remove the dialog line and reassign the previous line/ next line references across the breach before importing the dialog. Your call.
These outcomes can be explained with a discussion about previous line/next line pointers, but I doubt many of you care about that, and most of you who do can probably figure it out for yourself.