I just finished watching a Video Games Awesome playthrough of the game, and it seems to me like it's mostly just doing a lot of side quests, with the exposition of whatever character you pick dumped on you at the character selection screen...and that's as far as characterization goes. Still, it seems pretty enjoyable if you wanna go around bashing some zombie skulls on a tropical resort, but the "story" element seems fairly standard.
As for dialogue, it also seems pretty tied into whatever mission you're setting out to do. Of course, the VGA guys only played like the first few hours of the game, but that's the initial impression I got.
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