Yes, you need to have a Dynamic Site set up. if your site is not dynamic, Dreamweaver will not populate the bindings tab with the dynamic data bindings for you to use when creating the message body.
In the training resources section of the site, there is a tutorial for setting up a Dynamic site:
19_dynamic_connections.htm
The creating an HTML email tutorial in the Solution recipe Section of the Universal Email page will walk you through setting up the email on the body tab of Universal Email:
universal-email/