XP Pro, dynamic or basic drive set up??

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I am updating my Dell Inspiron 1720 laptop to use a 120GB SSD drive in bay one and a Toshiba 500 GB conventional drive in bay two. I will be running XP Pro on this machine. I tested my NLite custom install CD on this and it loaded XP fine, with all my desired settings. I then added the second drive. I find an option to make this second drive basic or dynamic, whilst the first drive with XP on it is shown as basic in disk manager. I am not familiar with this dynamic thing, and a search has left me little the wiser. It's no big deal to reinstall XP if required. How should I have these drives for best results please? I have somehow ended up with this new 500 GB drive formatted NTFS which is what I expected, but showing as dynamic, with the SSD showing as basic. Thanks for any help.
 
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