http://elderscrolls.wikia.com/wiki/Garlic_Bread

Garlic bread: Restore 1 points of Health. Cures all diseases.

Golden.

Feeling sick? Take your character to olive garden

Garlic is the gift of the gods

You want to get more sick eating that garbage? Calling that Italian food is like calling McDonalds a steak house.

Want to kill Vampires? Why not garlic bread!

Bandits always make me laugh.

"VICTORY OR SOVNGARDE!"

*get them to near death*

"Death is highly overrated"

Another one:

"Can't wait to count out your coin!" (when your PC is in werewolf/VL form or chasing an animal)

*forget the exact quote*

"Can't wait to cut your heart out!"

(my PC in werewolf form response)

"Can't wait to eat your heart out"

Neloth's interactions are always golden and Yarmarz/Malacath interaction in that DL quest never gets old for me.

There others, but the ones I've listed have to be my most favs if I remember them that much.

Pretty much all of Sheogorath's dialogue makes me lol every time.

Beast races tails. They're so poorly animated like they're made of wood.

khajit never die, they're just miss- their tails anyway.

It's not a bug, it's a feature! Look here, that's why they're stiff, they need them stiff to annoy people like this http://www.youtube.com/watch?v=XbHX6cltDvg&feature=player_detailpage#t=12

Do the tails sink or float in water (just to make sure they are a witch or not [sorry, a different topic I just read made me say it here])?

Reminds me of. ..
Hunter to random deer: "Never should have come here!"

The man raising an army of undead chickens outside of Ivarstead.

When Paarthrunax asks you why he's up in Snow Throat and your character responds "I dunno. Dragons like mountains right?" His response "Hmmmm, true." always cracks me up.

And the fort where you encounter a group of mages working a forge. I always crack up when he says "Everyone else is practicing magic and what am I doing? I work the forge." The woman saying the same thing he says sarcastically is icing on the cake.

That is a very good one. I do lol at him when my PCs visit... their response, "Oh yeah, you and what army?"

Giants knocking bandits a mile into the sky.

The "empire" and the dunmer of the grey quarter.

Serana raising a goat... like thats gunna help a lot? lol...

Me: *steals necklace from bystander, then drops necklace, since there's no fence nearby to sell it.

Bystander: *picks up necklace. "Here, I think this belongs to you."

Yeah, that really happened and I laughed because of it.

This game... the surprises just keep coming.

You can kill anyone with a wooden cart.

NPCs can acrually do that? Never had that happen before.

Anyway, a few days ago, I pickpocketed from someone. Jewelry, I think. She catches me and says "How dare you!?!" as if she's going to attack me, only to say one second later "Okay, then" and casually goes back to her business.

Also, Serana's one-liners she taunts the enemies with give me a chuckle at times.

And then, there's some of the guards' dialogue and their accents that make them sound stupid.

“No lollygagging. ”

"Once, I dug a pit and filled it with clouds. Or was it clowns? Doesn't matter. It didn't slow him down. To be honest, it wasn't the best idea. And it really began to smell. Must have been clowns. Clouds don't smell bad. They taste of butter! And tears."

"Stupid dog"