What is the difference between SharePoint Document library and SharePoint List?

SharePoint Document Library :

1- SharePoint library is really for holding documents, files, and images etc. in similar way to how a regular folder on a shared network drive does. For this reason, libraries allow you to set up templates for common types of document and also give the option of version control so that you can track any revisions.

SharePoint List:

1- It is best thought of as mini-databases.

2- A list will allow you to store a number of items such as KPIs, tasks, events, staff details etc. in a similar way to how MS Excel or MS Access will.

3- The beauty of SharePoint's lists, is that you can make quick work of building a simple database (with its own, customizable, data entry forms) in a matter of minutes and without any coding. You can also choose which fields to include (title, reference number, status, date etc.) or create your own by creating a new content type and then adding custom columns to it.

Save Site as a template and using it in MS SharePoint 2007

If you want to quickly recreate the design, structure, or content of a site, you can save the site as a site template that you can then choose when you create a new site. To save a site as a template, do the following:

On the Site Actions menu , click Site Settings:

1- On the Site Settings page, in the Look and Feel section, click Save site as template.

2- On the Save Site as Template page, in the File Name section, type a name for the template file.

3- In the Name and Description section, type a name and optionally a description.

4- In the Include Content section, select the Include Content check box if you want new Web sites created from this template to include the contents of all lists and document libraries in the Web site.

Note Some customizations, such as custom workflows, are present in the template only if you choose to include content. Including content can increase the size of your template. The size limit for Include Content is 10 megabytes (MB).

5- Click OK.

The next time you create a site, the site template will appear in the list of available site templates.