The dynamite makes all the sounds associated with explosives but for some reason, it appears as a "Missing Texture" block when thrown. The dynamite doesn't destroy ANYTHING whatsoever. It just makes the explosion sounds and that's it.
I'm running the game without Optifine but I still encounter the same problem with explosives. I am running the game with Forge API and have the other following mods installed:
DrZhark's Mo'Creatures
BiomesO'Plenty
Balkon's WeaponMod