Hello,
Think of IP addresses as binary name badges given out by either your server (DHCP) or you (Static). If you give your PC a static IP you are essentially giving that PC a binary name badge forever, instead of letting your server hand out the binary name badges which are temporary. However do not confuse the binary name bade with the name of your PC located at: Start/Right click "My Computer"/ scroll down to Properties/ click the second tab; this is the non-binary name, ex. "Steve' Computer", given. The non-binary name helps identify your computer in a workgroup or when using remote applications like Logmein or Windows own Remote Desktop.
If you are setting up a small network and have a wireless router, the easiest and all around best way to give out IP addresses is to let your router perform DHCP; it saves you time and the hassle of having to deal with managing addresses. Although if you are setting up a printer in a business network it is common to give that printer a static IP for many sound reasons.
