to change status of the dynamic entity follow these steps:
1: //Create a request object
2: SetStateDynamicEntityRequest stateRequest = new SetStateDynamicEntityRequest();
3: //Use string and not integer value for state. (For Lead use "Qualified" and not 2)
4: stateRequest.State = newState;
5: stateRequest.Status = newStatus;
6:
7: //Create an instance of the entity
8: Moniker m = new Moniker();
9: m.Id = entityId;
10: m.Name = myDynamicEntity.Name;
11:
12: //Set the state. Well... set the entity.
13: stateRequest.Entity = m;
14:
15: //Send the request
16: SetStateDynamicEntityResponse res = (SetStateDynamicEntityResponse)_crmService.Execute(stateRequest);