Would it be possible for anyone to give me a simple step by step process on how to capture great audio for dialog?
Step One - Turn on your computer.
Step Two - Send an email to Jeff Wexler.
Step Three - Let him know your shoot dates.
Step Four - Pay him and his team $1,675 per day plus the rental of the production sound gear.
That's how you get
GREAT production sound.
Now, if you're on an extremely limited budget, which is obvious in your case, you need to spend lots of time getting to know your equipment, learning new skills and exercising your ears.
If the mic is mounted on the camera you've already lost the game. You need to have someone - if you're not doing it - to properly boom the microphone. This is not an easy skill to acquire. Just imagine that you have to put your camera on the end of a ten (10) foot pole and must properly aim it
without a video monitor. That is essentially what a boom-op does with a microphone; keeps it properly aimed at the talent without any immediate visual references. Oh, by the way, the boom-op must move the mic from actor to actor, keeping it properly aimed at each actor, while holding it over his/her head. Oh, I almost forgot; s/he also has to avoid getting the mic in-frame, avoid making shadows, avoid props and film equipment, and, of course, do all of this SILENTLY.
That is just the boom-op. Now you need to address the production sound mixing. This is properly setting the levels on the recording equipment (the mixer and the recorder) for optimum sound - the lowest amount of self-noise from the gear and the best signal from the mic (this is what the boom-op is doing). The PSM (Production Sound Mixer) constantly adjusts the volume levels to account for whispers and screams and everything in between.
Then there is the cable wrangler (or audio assistant) who watches the boom-ops mic cable, occasionally swings a second boom, changes batteries in all of the gear (wireless systems, mixers, recorders, etc.), manages the audio log, and is generally a PA for the sound team.
On low/no/mini/micro budget projects these jobs are all rolled into one person. Not an easy task.
Getting great production sound is not as simple as "buy this, get that and then do these three things." It is a highly evolved skill set that requires lots of practice and experience to do well. Having consumer or prosumer gear makes the job harder, as you will need to compensate for the deficiencies of low-budget equipment. For example, the NTG-2 has low volume output issues, and the H4n has weak/noisy mic pre-amps; the gain-staging must be done with great care to avoid excessively hissy audio tracks.
Now, no matter what you do - even if you hire Jeff and his crew - you are not going to get the "Hollywood" sounding dialog without extensive dialog editing, processing and mixing. I'm currently working on the dialog editing of a project. I'm about 12 minutes in (about seven minutes of actual dialog) and have spent 20+ hours; that's just the edit, I haven't even begun noise reduction, EQ, etc. And I do this for a living; how much more time will you have to spend?
I didn't mean to get long winded or to dampen your enthusiasm. But great sound is not something you pluck off the shelf at Walmart. You must take great pains to capture clean, solid production sound, and then spend a lot more time working on the dialog (and the Foley, and the sound effects, and the score/music, and the mix) during audio post.
Good luck with your endeavors!