I need clarification on dynamic IP addresses and what they get attached to.
Is it true to say that any given ISP these days most likely assigns basic customers a dynamic IP address for each session they access the internet on their computer.
With a few exceptions, yes, it is safe to say that. My current cable ISP (RCN) has given me a static one, and is the first ISP I've ever had do that, and I assume it has to do with the way they set up my particular building's network. I do consider it subject to change at any time and do not depend on it.
If you have 2 computers on the internet in your house at the same time, will they have separate addresses, or is a single one assigned at the diverging point at the router -- or is that the result of a firewall?
You get one internet IP assigned to your router, as that's what's dialing in and connecting to your ISP's server. The rest of the world sees both of your computers as this IP.
On your side of the router, however, the router is (most likely) seen by your computers as 198.169.1.1, and the router then (again, most likely) dynamically assigns each of your computers a sub address of that such as 198.169.1.2, 198.169.1.3, etc. as your computers are turned on and connect to the router. This is called your Local Area Network (LAN) and you can connect thousands of computers to it and still have only one IP for the internet or Wide Area Network (WAN). (In this way, despite the limited number of internet IP addresses available, the world can connect millions more computers to it.) You can also change your LAN IP numbers around a bit if you like, and you can make your LAN IPs static for each computer.
-- or is that the result of a firewall?
Nope, firewalls have nothing to do with Internet Protocol. IP has to do with establishing connections between machines, firewalls deal with handling the data transferred between those machines after those connections have been made.
Does that help?