Formal Equivalence is a technique of translating a text while retaining it's grammatical structure; it does not attempt an interpretative meaning to the text. In other words, it is a word-for-word translation. Dynamic Equivalence on the other hand is an interpretative translation of a text; it not a word-for-word translation. The KJV used the Formal Equivalence technique, while majority of other translations in circulation today used the Dynamic Equivalence technique. Most of these translations should have been better called 'interpretations' rather than 'translation'... Let's explain better in the podcast.
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