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If a dynamic site is done properly, it will perform as well as a static site in terms of SEO.
Things to watch:
- Spiderability. Lots of speculation here with URLs of the form blah.php?id=999. Rewrite your urls to make them "SE friendly" or at the very least don't use 'id' as a parameter.
- Templatitus(!). Don't fall into the trap of having the same title tag, meta description and H1 on one page. Try not to look like a dynamic site.
arran.
As already noted, when using dynamic structures, just make sure that the URL's are user friendly and easily spiderable, i.e., not a bunch of special characters, etc.
Try this thread for more info: Dynamic vs Static URL's [webmasterworld.com]