The style I've been attempting is:
    Action, unquoted third person past tense.
    Dialogue, quoted second person present tense.
    Thought, unquoted first person present tense.

Hmm...  I'll tell you how I do it.  Action and Dialogue seem ok,
but for Thought, I either use what you've described (unquoted
first person present tense, or I use forward slashes ' / '.  By
treating the slashes as quotes, it appears to work well.  I chose
the slash because it gives just a feel of italics, sorta like a
symbol.  And as long as you treat them as you do with quotes
in Dialogue, you shouldn't have any problems.

There... my two cents.  Whaddya think of that?

                       Terence Fergusson
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"Another confused census taker?" - Max.
"Actually, it was the Commissioner with another idiotic
   and baffling assignment." - Sam.
"Does it involve wanton destruction?" - Max.
"We can only hope." - Sam.
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