Big picture question - Web sites vs Web Applications



I did my MCAD sometime ago in 1.1, using the 305 manual. I've since moved up
to VS 2005. I've created perhaps a half dozen Dot Net 2.0 web applications.
(Click on the Create Project link within Recent Projects and Asp.Net Web
Applications.) Now I find out that my co-worker has been programming in a
different style. He's been using the File/New/Web Site menu item. If I ever
noticed that option, I've forgotten it.

Could someone briefly summarize the differences between web 'sites' and web
'applications'? (I thought all web sites were web applications.)

(My immediate motivation for posting here is that my coworker approached me
for help, since his website is giving 'AccessViolationException' errors, but
he swears that he has no unmanaged code that he knows of. It also looks to
me like the web site has no references at all, if that's even possible, so
I'm even more confused.)
.



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