runouw.com

Its TIME add bowser, scripts (when we reach a particular area subtitles come out), More tiles like the ones found on single player, better looking canon, that huge eye (like on supermario64) enemy, toads and the princess that can talk, friendly enemies meaning that enemies like koopa or even bowser are able to be kept set as friendly and talkable, and ofcourse! Now make luigi setable ingame on level designer levels. (Or even make luigi as a friendly talkable person).

As far as everyone is aware, Runouw is too busy working on Last Legacy and won't be updating Super Mario 63 any time soon (if ever again).

Anyways if you want "NPCs" that the player can talk to, you should disable the thing you want the player to talk to then place a sign nearby with your dialogue.

If you really want scripts that trigger when you enter a specific area, SM63 cannot do that. However both Last Legacy and Last Legacy: Null Space are capable of doing that and a whole lot more with event triggers.