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[Ultima Ratio Regum]

Generally the actual writing (text) is good, and the overall story/plotting is awesome (especially how it can be impacted by the player), but the delivery and voice acting is absolutely hilarious. Watch as JC Denton

Same goes for David Duchovny in XIII. His delivery of the lines is as flat as can be. Shame, since the plot's fascinatingly interesting and convoluted...

[1982]

Generally its hard to write believable dialogue for games that happens in some sort of fantasy or extraordinary environment. It has always being major challenge also in literary and films. Games tend to go even much further in their extraordinary setting than other forms of entertainment. You just can't make believable dialogue out of a situation where two characters are talking about diamond plated golden sword that is supposed to kill eternal evil thats made out of lava. The problem with these games is that they tend to take everything very seriously. Its hard, very hard to achieve even for most accomplished fiction and screenplay writers. Penumbra Overture was done well, but it had no dialogue at all. Story was told quite well however.

Some genres are easier, but fantasy/scifi game genres are absolutely hardest by means of dialogue. I think this is generally more a problem in fantasy themed games, than scifi thou. More closer the extraordinary setting is to our world, more easier the dialogue construction becomes. In films e.g. Alien and The Thing. They are fantasy and scifi, but they work so well because the characters are normal people from our world. Like they are complete apart from the extraordinary setting.

How about Conan (film)? Its very fantasy and very extraordinary, it has dialogue and story. But it is not serious, It's like living, breathing statement of "being to most awesome fantasy film ever". That attitude you don't see too much in game industry. We used to have that back in days, but nowadays everything is very very serious. And dialogue sure fails because its hard, if not even impossible to make such level of believable dialogue that fits with the overall seriousness.

But you can counter-attack that by removing as much of dialogue and story telling from a game as possible, and only focus on presenting the game universe as is.

[Brian Wilbur]

I loved Sander Cohen in Bioshock -- very memorable character -- except for that time he said "like a moth to the flame". Come on guys...

[Mattivc]

The Soldiers: Heroes of WW2/Faces of War/Men of War series.

For those who haven't played. Its a WW2 RTS, with a very detailed physics and environment damage system. Every soldier and vehicle has a inventory, and it has a building damage system that is close to many modern FPS games. And best of all it lets you directly control a single unit at a time like a RPG. One of those unknown gems of gaming in my opinion.

But the voice acting will make you cringe. Sounds like they pulled random people off the streets and gave them a few bucks to read lines.

[Brother Android]

Elder Scrolls games are pretty bad in my opinion, though they've been getting a bit better. There are games with much worse dialogue, but the problem is that most of those games are at least interesting on the grounds that their dialogue is so bad. Morrowind in particular has dialogue that is functional, but terribly dry and humorless and boring and repetitive; just one dedicated writer of reasonable skill would have made that game a lot better. That said, i still like it a lot.

[Ben_Hurr]

How about the english versions of the Forbidden Siren series? 
http://www.youtube.com/watch?feature=player_detailpage&v=lyxNslc7qis#t=194s

OHHHHH ITS NO YOOOSE

[BrandonQ]

I am going to go with a popular one and say Halo: Reach. I could not stand the voice acting in that game.

[XRA]

Resident Evil

[gimymblert]

Star fox 64

[andrewjb]

Castlevania: Symphony of the Night

Fantastically good gameplay, decent story for a Castlevania, but the dialogue was hilariously bad.