This might not be of any use to most of the writers on these boards, being as good at writing as they all are, but some budding writers might find this blog post useful. It's based on script writing rather than story, but it still makes a good point on how to make characters communicate what they are thinking.

A rookie writing mistake

Oh, and I should probably warn those gentler FoLCs that there is a bit of swearing at the end of the blog post, so if you don't like swearing, consider yourself warned.