This paper introduces a general methodology for the development and study of conversational systems. Closer coupling of linguistic and psycholinguistic theories about dialogue with the development of dialogue systems allows each to inform the other more fully. Three activities support our goals. We develop theories through the empirical investigation of dialogue in conversational settings. We use this to inform our theoretical research on dialogue and our design of advanced conversational interface systems. We then experiment with these systems to compare their behavior to human-to-human interactions. This paper discusses a study and analysis of conversations about library information, the development of a system based on this analysis, lessons learned, and future goals.