Yeah that's a bug I planned on fixing long ago but got busy doing other things and totally forgot to update it.

I posted a question about this to the Adium forum and Evan was kind enough to respond. To fix this for the latest Adium you need to put 'tell application "Adium" to' infront of all of your 'display dialog' and 'choose from list' calls. This change came about in 0.83.

One other thing I forgot to mention, running the script outside of adium works fine.

Looks like Adium no longer allows 'display dialog' or 'choose from list' in adiumscripts, or maybe it's a bug. A quick test using 'do shell script' to send something to the system log, immediately followed by a display dialog, immediately followed by sending something to the log again results in only the first text going to the log and the dialog box never showing up.