What is the difference between a basic and dynamic drive in theWindowsServer2008environment?

A basic disk embraces the MS-DOS disk structure; a basic disk can be divided into partitions (simple volumes).Dynamic disks consist of a single partition that can be divided into any number of volumes. 

Basic Disk uses a partition table to manage all partitions on the disk.

Dynamic disk uses hidden database (LDM) to track information about dynamic partitions.