Dried shrimp is mainly used for flavor. Compare to fresh shrimp, dried shrimp can bring a much stronger flavor and different for fresh one.
Dried shrimp is normally made with small shrimp.
Dried shrimp is mainly used in fillings, sometimes is used in simmer dishes, once a while in stir fry dishes.
For more info., please click the link below:
http://en.wikipedia.org/wiki/Dried_shrimp
For dishes using dried shrimp, please click following links:
Pancake with Zucchini and Dried Shrimp