Dialogue Paragraphs create the effect of a pause in a Character's Dialogue.
There are two circumstances where you see Dialogue Paragraphs. The first is a simple pause in a Character's Dialogue. The second is when a Character's Dialogue is interrupted by some Action.
In the first instance, a Dialogue Paragraph just looks like a blank line tossed in the middle of the Dialogue. It looks that way because, that's what it is. Like this:COMMANDER You, over there with the scanning beam. Get me a reading on the solar flare.And you, with the sexy underwear on under your suit. Get into my ready room!
The second instance is just like the first, but includes some Action in between the pieces of Dialogue, like this:COMMANDER You, over there with the scanning beam. Get me a reading on the solar flare.A beautiful cadet walks by. And Commander uses his x-ray scope.And you, with the sexy underwear on under your suit. Get into my ready room!
I can't say do or don't use Dialogue Paragraphs, or do use the first kind but not the second, or vice versa. Dialogue Paragraphs have been popping up more and more lately, but they're still very stylistic. So, as always, use your best judgment, based on the effect you're trying to create and the expectations of your readers.
Simply toss a blank line or an Action element in the middle of the Dialogue. If you have an Action element splitting the Dialogue, make sure there's one blank line before the continuing Dialogue.
To create Dialogue Paragraphs, just press <Ctrl-Enter> when the cursor is in some Dialogue or in some Action that follows Dialogue. Scriptware will skip the appropriate number of lines and it will put you in the proper Dialogue margins. Type away.