I have rather little scripting experience so I tried getting an idea from some mod on the nexus. Their method uses the command, "Player.Moveto" from within the dialouge window to teleport the PC when he chooses a certain response (and deducts some cash as well). Goodbye is selected as well which I presume is supposed to exit the dialouge mode.
Anyways the problem I am having with this method is that whenever I travel in this way and then talk to any person for the first time ... the camera shakes around wildly.
EDIT: I just found that its a known bug: http://cs.elderscrolls.com/constwiki/index.php/Common_Bugs#MoveTo_Oddities
Can someone please tell me what I can do to solve this. A draft script would be appreciated.