Right, pretty much
You could try prototyping with Bitcoin-Qt and the payment protocol implementation there. Alternatively, bitcoinj is about to get a payment protocol implementation too (there's one being prepared for review), and there's a GUI wallet template app as part of the source now that's reasonable nice looking, which is designed for contracts work.
If you're going to make dispute mediation real (please do!!!) then the right place to start is by figuring out what you want the UI to look like. Then work backwards from that to how to implement the messaging and then you'll find the multisig part is really the most trivial part of all If you do it with bitcoinj I can give you a general gist of it.