Since I found myself rewriting the same explanations over and over again I figured it was about time to put it all down in one convenient Q & A format. It's handier for my Followers and saves me time, whoot! I've also made it in PDF format so it's easy to download and keep on your own computer. So here's the direct link: Understanding Basic Blog Design Issues for Blogger and you'll also find it listed on the main tutorials page of my site.
I hope this helps to make things just a bit clearer for those of you who are struggling to understand the differences and allows you more time to do what you love ~ blog of course.