Hi Editable Text,
In short if you show Google a crawlable link to the content with the dynamic header/content, and the content is driven by the unique URL, yes it will index it.
As with any SEO/life question, there are a few t&c's with this.
- The pages need to be unique enough not to be classed as duplicate content
- Make sure it's intelligently linked internally
- You have external links pointing deep into the site
- You have a decent site architecture
To answer you second question, you'll need unique pages for each location, unless your content would be so thin, you'd need to group them. The URL doesn't have to include the keyword, but it's damn helpful if it does.
Hope that helps
Iain - Reload Media