Overview:
Previously, I've described the initial version of dynamic templates for blogger, and the second release.
This 2nd version is a lot better integrated with the rest of Blogger, but it has some consequences for many other parts of the system.
In particular, if you want to go back to using a design or layout template there is a real risk of losing all your previous gadgets if you aren't careful how your remove the dynamic template.
Dynamic view template = no Design option in the dashboard drop down
One effect of choosing a Dynamic template for your blog is that the Design option is not on the main-menu drop down in the dashboard in the new, the post-Sept-11 Blogger interface.
Instead, there is just Template, which takes you straight to the Template designer: this happens because, unlike layout or designer templates, you have no control over the layout of a blog with dynamic template, and cannot edit the HTML behind it.
If you want to have this level of control, including being responsible for the consequences of editing your template, then you need to remove the dynamic template, and switch back to a regular one.
How to remove a dynamic template from your blog:
When you have chosen a dynamic template, there is an option in the Design screen to " Revert to previous template".
If you click this link, your blog template goes back to how it was before you applied the designer template, including all gadgets and layout customisations.
If you choose "revert to previous template", and then pick a different designer or layout template before saving, then you will lose all gadgets and customisations that are not on the "standard" version of the new template.
The moral of the story: always back up before making major changes to your blog. (And even then I'm not 100% convinced you will be able to restore your gadgets to exactly how they were.)
NB Any posts you have made in the meantime are kept - it is simply the template that is changed here, not the blog contents.
Disabling dynamic views for your blog:
In new-interface-Blogger, I cannot see any way to turn Dynamic views off.
In pre-Sept-11-Blogger, there is still an option to turn Dynamic views off, under Settings > Formatting.
This is still relevant, because people can see your blog using dynamic views, even if you haven't chosen a dynamic template, by using www.YourURL.blogspot.com/view (although this may not work for blogs with custom URLs)
Related Articles:
Dynamic templates, version I
How to enable a dynamic template for your blog
Letting your readers the ability to see your blog in dynamic views.
Advantages and disadvantages of editing your blog's template
Giving your readers the option of using dynamic views
Types of template in Blogger