The 100MB partition is automatically created by Windows Vista and above, it's purpose is primarily there for future-proofing your install for bitlocker, if you were to encrypt the drive, then the 100MB partition at the start is the unencypted part which is required to boot to initially. I'd leave it alone as it contains information required to boot.
Dynamic disks, assuming you will only be using Windows 7 on your computer (i.e., not linux), then you should not have problems converting it to dynamic. The primary disadvantage is they are not as compatible with some DOS/linux OS and based utilities and perhaps slightly harder to recover because not as many tools out there which support the partition table.
Advantage is more than 4 partitions (128 iirc) (which are called volumes when a disk is in dynamic form), partition sizes larger than 2TB, and options for spanning/striping disks within Windows.
You
MUST create a full backup before attempting a convert though

It has been known for the OS to stop booting after a convesion.
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