Let's say that the party comes in to town following whatever plot point they might happen to have at the moment -- let's just say that they're looking for clues on how to infiltrate the BBEG's evil death cult so that they can get to the BBEG and render battle.
It's late afternoon when they roll in to town, and they want to find someplace to shack-up and relax for the evening. Once they get settled in, some of them want to relax, and some of them want to get straight to work. Here's how this might play out:
-- the orc barbarian decides he just wants to go to the seedy part of town and get a beer and a whore (his skill set might not be up for investigation and/or socializing, so the player is just trying to stay in character while staying out of the way). While he's off doing that, some street-tough tries to steal his coin pouch -- at which point, the barbarian guts the thief, takes
his coin pouch, and throws the body in a storm drain. Inside the coin pouch, he finds and odd looking token that's tied to a thin leather cord ;
-- the cleric goes to find a temple so that he can pay proper tribute and to touch bases with the clergy to let them know that he's in town. While there, one of the clergy pulls him aside and warns him about a cult that has been kidnapping people and possessing their souls ... they're trying to do something about it, but the cult is pretty good at covering their tracks ;
-- the wizard goes to do some reading and perhaps to find some new spells (buy some scrolls, swap spellbooks, whatever). He happens to over-hear a conversation where he learns that there has been a run on necromancy spells of late ;
-- the bard decides that he's going to find an upscale festhouse in which to ply his trade. He's trying to rub elbows and trade stories with whoever will give him the time of day. He notices one of the "service ladies" has a blank look on her face, and happens to be wearing a thin leather cord around her neck that has an odd looking token tied to it. She tries to get the bard to go down to the "secret" private rooms with her, but he gets a funny feeling about it and declines (his Sense Motive checks tells him that she's up to something nefarious) ;
So, we have confirmed that the evil death cult is indeed in town, that they're performing evil magics on innocent civilians, that they're using the festhouse as cover, and that this token has something to do with it.
It's a very simple and straight-forward situation. Sure, all of that info could have very easily been dumped in a single scene; and if they wanted to stay together and just say "hey, give us the plot points", I could have very simply obliged. However, as it was, each of them had their own thing going on, and that provided me the opportunity to pepper the info out while allowing each of the players to feel important in the process -- hell, half the players in that situation weren't even
trying to do anything. I find that this helps to keep people engaged, thus increasing the enjoyment had by all.
Now, I'm not saying that I do this
all the time -- sometimes I do indeed just do a big info-dump. I'm just saying that you gotta make the effort once in a while to at least
look like you care.
I try to split up the information as well. In terms of amount of work, I usually pay it forward: if I need more information than I have prepped (so that I can split it up roughly equally), I generally ad-lib something and use it to expand on the future plot.
In dynamic scenarios you can improvise them towards a designated end goal, but risk creating plot holes and inconsistency in the process.
EXACTLY!!!
This opens things up for all kinds of neat stuff. I generally run things from the hip, and this helps let the players shape both the story and the world.
And if I happen to accidentally open up a huge plot whole in the process, that GREAT -- that gives me the opportunity to fill it with something interesting that adds depth to the story (obviously this can be taken to ridiculous extremes - at which point you might have to retcon some shit - but for the most part it's just an exercise in expanding our creativity).