Do the Empeg (mk1 or mk2) support dynamic playlists?

Yes, the player has an elegant interface which allows you to construct dynamic playlists. You can add individual tracks one at a time, or you can throw in all the tracks for a given artist, genre, year, or album.

On a similar note, does it support ID3v2 tags?

The next major release of the software will support ID3v2 tags.

Corby
SN#320, 6-Gig Blue