I am trying to figure out what the difference between the two is. I have been reading up on Microsoft's website, but that is going way over my head.

Could anyone please explain what exactly a dynamic disk is and it's advantages in plain English for me?

Dynamic disks let you do some fancier things that help more in a corporate environment. Such things as creating volumes, mirroring and expanding things. Basic disks are what have been around for the last few years. If you're just setting up your own computer, go with basic disk. I won't list all the differences cause, well, you said that was over your head.
Sounded a little fuzzy, but I'm not fully awake yet, sorry.....