Sutek said:
Dodge is only possible if you have an open square or a friendly square that is adjacent to your character to "bob and weave into", although you dont' actually move your character at all. It's like he has to have some kind of room to dodge around in a little bit. Well, if that's not avialable, you can't choose to use your Dodge defense.
No, you can dodge if you don't have an open or friendly space around you but you take a -2 penalty to your dodge defence.
There are some situations, such as balancing, which can cause you to loose your ability to dodge though.