A vital element in dramatic interaction is the declaration of relationship, which is the announcement of the value of the speaker's relationship with another person. I differentiate between second-person declarations (e.g., "I feel this for you.") and third-person declarations ("I feel this for that person.")
The declaration in and of itself is simple. You create five verbs for each relationship, expressing very negative, negative, neutral, positive, and very positive feelings. Thus, the verbs for Affection might be DeclareHatred, DeclareDislike, DontCareEitherWay, DeclareLike, and DeclareLove. You do this for each of the basic relationships. You should probably have separate versions for second-person and third-person flavors.
The problem you have with these is not in the actual verbs, or in their processing, but in setting up the reaction options for each of these. Remember, you only have eight possible options for each role, and you can't differentiate roles by relationships or personality traits, because you don't honestly know these values for the human player.
So what should be the reaction options to a verb such as DeclareHatred? Obviously, you'd want to be able to declare your own relationship &emdash; that's five out of eight options already. Of course, if you've already declared your relationship in this thread, you don't want to repeat yourself, so you can have two separate roles based on PrecursorEventHappened. If you haven't already declared your feelings in the same relationship, then you may do so; if you have already declared them, then you would get a list of mental state options that might look like this:
1. I'll tell him how trustworthy Joe is.
2. I'll tell him how much I look up (or down) to Joe.
3. I'll tell him how much I am committed to Joe.
4. I'll tell him how much I feel obliged to Joe.
5. I'll tell him how much I approve of Joe.
6. I'll tell him how envious I am of Joe.
7. I'll tell him how much CustomReln I feel for Joe.
8. I think I'll terminate this conversation.
Having chosen one of these, the subject reacts to the option with the appropriate selection of declaration options.
This arrangement still has its problems. For example, the inclination formulas for this set of options must take into account PrecursorEventHappened for each of the relationships, to prevent the possibility of looping behavior. (I think it's OK to let the human player get caught up in loops if he chooses to do so; he won't do it millions of times the way the computer might.) So we're still talking about long clumsy inclination formulas.
I will warn you that, no matter what, there will likely be problems with overly loquacious characters who bore the player with endless prattle about their feelings. It might be a good idea to include a loquaciousness-inhibiting option such as "I don't have time for idle gossip!" to cut down on this. Of course, if you do, then you'll need a balancing option such as, "Gosh, that's fascinating!"
The second-person flavors of these verbs should be easier to concoct and handle than the third-person flavors, so I'll leave them as an exercise for the reader.