What do you mean by an ap that has dynamic vlan assignment? You mean it assign vlans dynamically without refering to a radius server? dynamic vlan assignment is done from the radius server so that should usually work with radius regardless of what AP you use.
Cisco Small Business APs do not work with WLC. WLCs made for enterprise environments. Vendors though can manufacture APs that works with Cisco WLCs because CAPWAP is not proprietary (not sure about any currently). If you want more information about small business APs you can ask in the small business-wireless forums.
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