Can anyone point me in the direction of resources that explain the difference between the two?
They appear to do the same thing but are implemented in a different way.. e.g. web service application compiles to dll and global.asax.vb compiles into the app, rather than being treated in the same way as a normal web service.
Edit: web-service-application is accessed by adding a project, then selecting web when adding to a solution the other is accessed by adding a "new website" then selecting asp.net web-service