I couldn't find anything on this, I have a good idea about how the whole dialogue system works but how the heck do you do lip syncing to go along with dialogue audio?

When you are doing this tutorial http://www.creationkit.com/Bethesda_Tutorial_Dialogue and you record your voice file (see recording a temp track near the bottom) a .lip file will be automatically created. If you record a .wav file sepearately, you will tick the from .wav button then click the generate lip file button and it will create one from your .wav file. Also, check out this video for more info: http://www.youtube.com/watch?v=TobpP1BMQo8&feature=youtu.be&hd=1. There are also a ton more here: http://www.gamesas.com/topic/1343653-creation-kit-video-tutorials-merged/. Have fun!

It's done automatically?! That's amazing, I dunno why people arent mentioning that

Once you have the sound file, you click a button, and it creates a matching animation, yes. The only issue, is that all the functions for batch generation seem to be broken, so you have to manually click the button for every single one. My current mod will have like 8000 voice files... that's a lot of clicking.

Though it's still FAR better than what we had to do with Fallout.

Wow Now you have to show me what you're working on!