How do i add new rooms and encounters??

A new room as in a complete new area --> New Area Wizard, that'll guide you through the proces. A new room in an area, look in the tileset options of the blueprint panel.

Encounters: Encounter Wizard or select Encounter trigger from the trigger blueprints, paint the outline and double-click when you're finished.

OK then how do you put conversation on a character because the convo Wizard is confusing and i dont even know if it will work for the right character. And once im done how do i play it?

First create a conversation file. Then open the Creature Properties of the creature you want to have the dialogue on. On the first tab, at the bottom is a slot which says something like conversation, or conversation file. Open the dialogue file you created in there. (You can also create a new one here by pressing the edit button)

To play your module save it, open the game. New game, playermade modules (or something like that) your module should appear in the list, under the name you saved it.