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\documentclass[twoside,10pt]{book}
\setlength{\parindent}{0in}
\newcommand{\dialogue}[2]{\hangindent=1in \makebox[1in][r]{#1\hspace{0.1in}}#2}
\newcommand{\anote}[1]{$^{\circ}$\marginpar{#1}}
\begin{document}
\dialogue{Bob}{I am Bob and I am very boring.\\
I sometimes use recondite\anote{obscure} words for fun.}
\end{document}
Thoughts on the best way to do this?
EDIT:
I played with the page layout settings to get what I want using marginpars for the glosses, but only on recto pages; on verso pages it is still appearing on the wrong side and I don't know how to reverse the text to the other side. According to The Companion, however, changing the layout using \setlength should only be done in the preamble; I need to do it in the body, since only the text of the play should be set this way.