I am a GM running 3rd edition for a few months now and I am still not sure how to do social encounters. When I run a combat the action cards and mechanics work very well. When a social encounter occurs it makes the game stilted. The rules state the iniative is determined using fellowship and each player has an action the same as combat. But social encounters is where the roleplaying is done. When an NPC says something in narrative, do the players have to wait their turn to get their say and play a card to influnece that NPC?
Example - Playing A Day Late a Schilling Short, negoitiating with the noble in the carriage. All rolled for initiative. Players go first. High Elf plays an action card makes roll is successful. There is dialog from the High Elf that needs to be responded to by the Noble but its not his action yet. The Rogue goes next again with some dialog is succesful with the action. But the high elf wants to add something to the conversation but its not their action. Now its the Nobles turn, plays his action with some dialog rolls and is succesful too. In the meantime High Elf wants to talk again but still has to wait.
This is difficult to explain. I am used to just having my Npcs talking to players in character then rolling the dice dependant on the way they roleplayed the situation. With this the roleplaying just seems to have gone. I know it will help those players that do not like to "get into character".
How do others do it or have I got it wrong completely?