The easiest way to find out what the System Firmware level and the Service Processor level are is to run> lsmcode
Also, DLPAR requires the unix_mp or unix_64 kernel and will not be enabled without it. Even if your resource allocation is 1 CPU, it still should be running the MP kernel because it is capable of multiple processors. This is not a change that can be made on the fly but will need to be relinked and a reboot. (If anyone needs the specifics, let me know---I've done it enough times....)
If you ssh to the HMC and run> lspartition -dlpar --that will list out all your partitions;Look for Active:<1>, and Dcaps:<0xf> --if either or both are zeros (<0> and/or <0x0>) then you cannot to Dynamic functions for whatever reason. Usually related to communication/network/hostname problems between the RSCT daemons on the HMC and the LPAR partition.
my3cents,
Ken