Will actions I take in the dynamic events system affect or interact with my personal story?

Affect, no. Interact with, yes. Sometimes, your personal story is taken from the same point of plot. The centaurs are attacking human lands, for example. There may be events to drive off the centaurs from Nebo Terrace, or to attack the centaur camp and kill a leader in their army. Separately, there may be a storyline that follows the path of a lost soldier, tracking him through said centaur camp to find clues as to his whereabouts. Those are interlinked, but they do not directly affect each other. Our intention with this is to make the world real and to show that the things happening all over the world are not isolated or self-contained incidents; they affect everyone in the area, both in large and small-scale ways.