Static Passwords: 

The pros of static passwords are that they are simple to use and do not change.  They require less time from the support staff to unlock a user. 

The cons to using static passwords are that they require secrecy in order to protect the password.  Static passwords must be sufficiently complex and, as a result, may be hard to remember.

Dynamic Passwords:

The benefit of using a dynamic password is that they are for one-time usage. They are more secure than a static password. You can give the user the password to unlock their install.  No secrecy of passwords is required – they are only good for one time use.

The con of using a dynamic password is that unlocking an install mode takes more time than a static password.  Dynamic passwords require using the “Dynamic Password Generation Utility.”