I've just started playing The Walking Dead on Xbox 360. The game offers you multiple choices in conversations mostly to be answered in a limited time. How do these choices affect the course of the game? Do they affect the difficulty level? Can they change the direction of the story dramatically?
Yes some choices you make will dramatically affect the storyline.
I Think all your choices will end up changing the end result in episode 5. Those little notes at the top of the screen hint at that.