Do you do this during the import/character creation stage or somewhere after the tutorial? I did not see this option at all when importing my save and starting the game. Nor can I seem to access it in the options menu after starting the game.

El bumpo

@stryker1121: It only gives you the choice if you are starting a fresh character. If you import then you are automatically in RPG mode though you can still set automatic dialogue and combat difficulty in the settings.

Rpg is the corect answer which is what's picked when you import.