The conversation syntax looks OK to me.
Does that conversation exist?
Does the PC enter the trigger immediately on entering the area? If so, I recommend a 2 second delay, because conversation is somewhat unreliable during the area OnEnter event.
Are you getting the "too excited to talk" feedback? In that case, ClearAllActions(TRUE) should clear the combat state.
Incidentally, you can achieve a similar effect by using an invisible placeable (whose name and portrait resref have been preset to mimic the PC) to start the conversation, but that shouldn't be necessary here.