As Seda said, dialogue choices have concrete effects in the sequel.
Thankfully the first answer is always the best one. (Except in one instance in the Sequel)
Basically if it seems like the typical good guy answer take it.
Ok this sounds like a lot of useful concrete advice, thanks.
No problem. As a final note I'd go for magic on Serph as opposed to a Phys build.
While phys does have the benefit of crits and few resistors, Magic determines both Mag defense and attack, so if you want anything resembling longevity for Serph you're going to have to do some Magic investment no matter what, so you may as well maximize your gains. As long as you put a little bit of points into vitality on occasion Serph should be a consummate party member. (Mine had maxed magic in the late 30's, so I was able to invest in vitality in the rest of the game until he was nearly indestructible.)
Agility and luck aren't that big of a deal if you're using magic. (agility seems to affect phys more than magic for some dumb reason) I barely put any points into them (and even then I usually did it through incenses) and I had zero trouble with hitting enemies, and death/expel are easily neutered if you get the void skills and take appropriate caution.
I'm going to start Nocturne today which I haven't played for a few years.
Any tips rather than me opening up a big text file in gamefaqs?
Get fog breath and tornado as soon as you can, go for a Phys build.
Jack Frost has dark might. Fuse him onto as many demons as you can to get it.