Website vs web application

Web Sites vs Web Applications. You can choose either from Visual Studio. What's the diff?

There are physical differences, compilation differences, and they are for different usage scenarios.

First of all, what's the difference btw a website and a web application?
For one, a web application is on a modular scaffold of logically connected namespaces. It uses a central codebase and can be added to at any time, from a variety of directories. A web site conversely is locked down by file structure, so to speak.

So if you are a codewolf, why would you ever go with a Web Site instead of a Web Application?

There are fundamental and deep differences between the two.

WEB SITES
Known as the "2005" web project model
Uses a folder-based approach to web dev
Typically associated with moving 2003 projects to 2008

WEB APPLICATIONS
Known as the "2003" web project model
Uses a project-based approach to web development
Created to address some of the feedback from customers

In short, the 2003 model was project-based, which was great for .NET but not platform agnostic for other deployment environs such as dreamweaver. Those type of platforms are folder-driven and don't read code to establish connections.

PRECOMPILATION
Web applications are packaged into dlls, while web sites are not.

Notice some immediate diffs btw web sites and web applications:
Websites use a folder-based style, so it matters which folder you put your content in.
Websites do not run on VisualStudio, they run on IIS.

Websites have a solution file (file that launches the solution), but all it does is launch the solution into VS2008.

More at http://blogs.msdn.com/zainnab/