If you select the MBR Partition Table, the you can create 4 Primary Partitions, or 3 Primary Partitions and 1 extended Partiton, and the extended partition can be used to create 28 Logical Partitions (not sure about this number).
This is mostly correct. The number of logical partitions is theoretically limited only by the disk's size; in theory, you could have just under half the number of logical partitions as their are sectors on the disk, with each partition being one sector in size. In practice, this would be quite pointless. Also, there are likely to be OS-specific limits. I don't know what those limits are in Windows. The 28-logical-partition limit you cite might be accurate for Windows or it might be complete hogwash; I simply don't know the Windows limits. (I have created a disk with well over 100 logical partitions and accessed all of them in Linux, though.)
FWIW, MBR is on the way out as a partitioning system, although we may continue to see it in use on USB flash drives and the like for years to come. It's limited in quite a few ways, including a 2 TiB disk-size limit (assuming 512-byte sectors) and the awkward distinction between primary, extended, and logical partitions. The successor to MBR is the GUID Partition Table (GPT), which doesn't have the equivalent of extended and logical partitions (and therefore makes the word "primary" in "primary partition" pointless). GPT supports 128 partitions as a default value by most partitioning tools, although the standard permits that value to be raised if necessary.
Importantly, no matter what the partition table type, partitions are contiguous groups of sectors, such as sectors 2,048 to 2,664,447; you can't have a partition that has "holes" in it. This can make managing partitions awkward and dangerous, since if you use a disk for a while and then decide to delete a couple of partitions and create one new and bigger partition in its place, this might not be possible without first moving other partitions to make the free space contiguous.
But now I am introduced to the terms Basic Disk and Dynamic Disk, what are these terms, are they Microsoft specific or something?
What Microsoft calls a "basic disk" is just a disk with a conventional partition table (MBR or GPT) and filesystems stored directly on partitions -- that is, partition #1 might be FAT, partition #2 might be NTFS, etc. Any OS can find filesystems stored on a "basic disk," with the caveat that the OS must understand the partitioning system and filesystem. (Today, just about everything understands MBR, and most OSes understand GPT.)
A "dynamic disk," by contrast, uses Logical Disk Manager (LDM), which is Microsoft's proprietary logical volume management (LVM) system. LVM is more flexible than a "basic" partitioning system because it enables more flexible use of disk space. Partitions (aka physical volumes, or PVs, in LVM-speak) can be grouped together into volume groups (VGs), which in turn can be split up into logical volumes (LVs). This enables you to create a single filesystem that spans multiple disk drives. You can also add and delete LVs without worrying about their start and end points, and even if a new LV covers multiple non-contiguous ranges of sectors, which is handy if you need to frequently add and delete filesystems. Note that I'm more familiar with Linux's LVM system than with Microsoft's, so it's conceivable that Microsoft's LDM is different in some subtle way that I'm misrepresenting; but AFAIK the two are pretty similar at this level of analysis.
Microsoft tends to shift from a "basic" disk setup to its dynamic/LDM setup when you create more than four partitions on an MBR disk. This is helpful for a Windows-only system because the Windows partitioning tools are awful at handling extended and logical partitions. The problem is that LDM is a proprietary Microsoft system, so if you want to dual-boot with something else, you're likely to have problems accessing the Windows filesystems, or even installing your new OS. I'm not positive, but I'm pretty sure that Microsoft's tools are less likely to impose an LDM setup on a GPT disk.