Just copied this from Brad Smiths article on dry hopping. I've also heard Jamil saying pellets are better in some of his podcasts.
"Which hops work best for dry hopping? There is consensus that pellet hops are the best choice for dry hopping. Pellet hops are pulverized before being molded into pellets which maximizes the area exposed to your beer and also helps break down the cell structure of the hops. This helps expose and transfer the fragile hop oils into your beer."
"Which hops work best for dry hopping? There is consensus that pellet hops are the best choice for dry hopping. Pellet hops are pulverized before being molded into pellets which maximizes the area exposed to your beer and also helps break down the cell structure of the hops. This helps expose and transfer the fragile hop oils into your beer."