Like when viewing your journal or in a conversation with an npc and some words are blue and when clicked on it takes you to the appropriate topic that that words about, can I do that in the construction set? If so how?

I suggest getting a tutorial on Dialog.
I learned from the one here: http://www.calislahn.com/elder-scrolls/tutorials/
http://www.gamesas.com/user/176129-jac/ also has a good one, and I believe his sig links to it.

thank you for the links I'll take a look at them

so I took a look at the dialog tutorial but I'm still not sure how I add a hyperlink to something? I should be more specific I have this book thats pretty long and I want to put in some form of an index that you can click on and it would take you to the page the topic is on.

Books can't do that. Only the Journal can.

The highlighted Topic words are a part of the Dialog system, which is connected to the Journal functions.

oooooooohhh well that explains it.....hhhhhmm but that gives me another idea...i think. thanks for clearing that up.