A dry kit add's nitrous only to the intake manifold, and allows the injectors to take care of the fuel. A wet kit ads both nitrous and gasoline to the intake. The danger here is that with a wet kit, for the first time, you are making the intake manifold explosive. If, when you use your nitrous, your timing is off a hair, or your valves float, or aren't adjusted properly, or if an intake valve hangs open for any reason, you can blow the intake right off the engine. Usually, it only destroys the throttle body and the mass air, but I've seen hoods get blown off from the damage.
Nitrous oxide by itself is not flammable, so a dry kit is safer, especially for the nitrous rookie. But, a wet kit has a bigger punch.
Take care,
-Chris
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