Well...
Your conditions won't work at all
You are checking to see what dialog button has been pressed, when the event has nothing to do with dialog buttons.
Heres how I would do what I think your trying to do:
At the start have your dialogs (Remember you can't show dialogs on 'Map Int'), lets say the player selects 'Easy'. So you have a trigger that like this:
Event
A dialog button is pressed
Condition
Pressed button = Easy
Action
Set "Difficulty" to 1 (1 = Easy 2 = Normal 3 = Hard)
Now with your region:
Event
Unit enters unit life
Condition
Owner of 'Entering Unit' = Player 9
Action
Unit - Set life of (Entering unit) to 50.00%
I'm at school at the moment, so I hope this works xD
Well then, Good Luck and I hope you get this working.
- Azalgath