@noxxims: I agree with everyone who said that the format should usually (possibly always) be the first, with one speaker's dialogue staying in the same paragraph (and always, ALWAYS starting a new line for someone else). However, I swear I've broken the rule before and did a line break before the second piece of whoever's dialogue. Not even for a long monologue. Just one sentence, description, new line, their other sentence. I usually mean it to get across the effect of a character breaking an awkward silence, or just taking a long breath, but I'll face it: it looks pretty messy.
I don't recommend it. Just saying that I ain't perfect. :p
