Gosh I'm sorry you're having trouble- it can be frustrating.
So as I understand it, you click on the lips, and gave Brado one answer from the drop down menu offered, right?
Then he answered you with more information.
Click on the lips again... you should get another drop down menu with answers. Click on the answer you want and Brado should understand you.
Also and this is less helpful cause it's frustrating... some of the quests have bugs now where the NPC won't understand even if you click on the lips and click on an acceptable system answer offered there. It happens and you don't know if it's your character or if it's a bug in the system. You can report it as a bug, and just leave the quest alone for a day or five and see if the volunteers fix it. I think if you search these forums you'll find a link to the bugtracker site.. sorry I don't have it right in front of me {at work you see! hahah!}
Have you gone to the bug tracker yet? It's a website where you can log in like you do here in the forums, set a password, then you can report glitches you come across that don't seem to be your characters fault- like when the NPCs don't understand even tho you clicked on the drop down menu.
I hope this helps. I'm not a tech expert, just a player...
Good luck!
Roled Rolak