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I'm learning the difference between these to concepts. I want to build a public Sharepoint site, and is one better than the other for this use, or is it too general of a question?

+2  A: 

At a very general level; application pages are stored on the web server's file system (also known as the "12 hive") and run in a more priviledged security context. You tend to use these to create administrative interfaces.

Site pages (such as default.aspx) are user-targeted, and available for customization via SharePoint designer.

Gurdas Nijor
so if i am making an internet site, i would customize site pages?
bmw0128
Any user facing page will tend to be a site page (if you set up your site collection as a Publishing Portal, you can very easily generate new site pages through the UI.) But like I said, i'm speaking in generalities.
Gurdas Nijor

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