> I am new to Google Maps. I am a Java developer and want to work on
> Google maps API.

To use the API you'll need to learn some javascript, or Flash if you
use the Flash API

> Please tell me what do I do first, whether Maps API version 2, which
> require an API key or should I use mapplets for implementing google
> maps functionality.

No idea at all, it all depends what your end purpose is.  There's an
API version 3 as well, which is suited for simpler applications.

> Also tell me difference between static and dynamic google maps.

Well ... one is static (that's to say, you send a URL to Google and it
gives you back a single map image) and the other is dynamic (its
controlled by javascript so that the user at the browser can pan,zoom,
click etc. and you can write code to fetch new data to display, switch
background maps, send data to a server, etc etc, all without reloading
the webpage)

cheers, Ross K
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