Using the following page i was able to achieve a dynamic edit page:

http://developer.force.com/cookbook/recipe/dynamically-updating-a-page

Now I have the need to apply similar logic to when a new record is created and when a user is viewing the record (in read mode) I need to be able to dynamically display a group of fields based on a selection made by the user.

Update: I was able to achieve the logic at the "read mode" level, is it just as easy to deploy similar logic to the new record mode by overiding the new button with a VF page and just change the mode from "edit" to "new"?

<apex:page standardController="Case">
<apex:form >
            <apex:pageBlock >
                       
                <apex:pageBlockSection title="Group 1" columns="1"
                                       rendered="{!case.Type_of_Request == 'Group 1'}">
                <apex:outputField value="{!case.Field_2}" />
                <apex:outputField value="{!case.Field_3}"/>
                </apex:pageBlockSection>
                
                <apex:pageBlockSection title="Group 2" columns="1"
                                       rendered="{!case.Type_of_Request == 'Group 2'}">
                <apex:inlineEditSupport showOnEdit="saveButton, cancelButton" 
                hideOnEdit="editButton" event="ondblclick" 
                changedStyleClass="myBoldClass" resetFunction="resetInlineEdit"/>
                <apex:outputField value="{!case.Field_4}"/>
                <apex:outputField value="{!case.Field_5}"/>
                <apex:outputField value="{!case.Field_6}"/>
                </apex:pageBlockSection>
                
                <apex:pageBlockSection title="Web Information" columns="1"
                                       rendered="{!OR(case.Type_of_Request == 'Group 3',case.Type_of_Request == 'Group 4')}">
                <apex:outputField value="{!case.Field_7}"/>
                </apex:pageBlockSection>
                
            </apex:pageBlock>
       </apex:form>
</apex:page>

 Also note, the above is a VF page put onto a page layout for the case record.