Ric,
You can use either mode as you want. Static/Dynamic Overlay’s type is “LayerOverlay” and CustomOverlays collection accepts “OverLay”, which is the base class of “LayerOverlay”, I think that’s why you found some functions only available in Static/Dynamic overlays. Just create a new LayerOverlay, in which you can also find those functions, and add it to the CustomOverlays collection.
Maybe you don’t need it now, but still here is how to set the MarkerOverlay in the Static/Dynamic mode. The Map1.MarkerOverlay is an InMemoryMarkerOverlay, you can add markers one by one to its features, but if you want to import whole bunch of features from a FeatureSource, please create a new FeatureMarkerOverlay, ----another kind of MarkerOverlay, and add it to CustomOverlays.
Here is the code how to use the default InMemoryMarkerOverlay, --------Map1.MarkerOverlay
Map1.MarkerOverlay.Features.Add("Kansas", new Feature(-94.558, 39.078))
Map1.MarkerOverlay.ZoomLevelSet.ZoomLevel01.DefaultMarkerStyle.Popup.ContentHtml = "Kansas City</Div>"
Map1.MarkerOverlay.ZoomLevelSet.ZoomLevel01.ApplyUntilZoomLevel = ApplyUntilZoomLevel.Level20
Hope that makes sense.
Ben