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Dynamic publishing does not work in SQLite 1 or SQLite 3 (only SQLite 2) on servers running PHP 4.x. SQLite 1, 2 and 3 works on systems running PHP 5.x.
However, the changelog for MT4 beta 6 indicates that it is not possible (note that DBD::SQLite is the library that supports SQLite3):
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54218: Hide Dynamic publishing option when MT is run on DBD::SQLite (not SQLite2)
CHANGE: Because database created using DBD::SQLite does not support dynamic publishing, MT4 now hides the option to avoid confusion.
CHANGE: Because database created using DBD::SQLite does not support dynamic publishing, MT4 now hides the option to avoid confusion.
I am running MT4 on SQLite 3 with PHP5, and would very much like to use dynamic publishing, but I don't seem to have that option.