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Will the site have custom features, or is it just using out of the box stuff? &nbsp;If out of the box, just do a template.
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ACH1LLES, Thanks for your prompt response. we have custom components such as lists, work flows, event listeners, web services and also a custom SQL Server DB.<br />
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All, Please note that i have to close this with in next 24 hours. Thanks in advance.
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<a href="http://johanolivier.blogspot.com/2010/08/sharepoint-2007-site-templates-vs-site.html" rel="ugc">http://johanolivier.blogspot.com/2010/08/sharepoint-2007-site-templates-vs-site.html</a><br />
this might help you to get a clear understanding betwwen the two
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what is the right deployment approach between Site Definition and Site Template for distributing a SharePoint Site as a 3rd party product?
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what is the right deployment approach between Site Definition and Site Template for distributing a SharePoint Site as a 3rd party product?

Will the site have custom features, or is it just using out of the box stuff?  If out of the box, just do a template.

ACH1LLES, Thanks for your prompt response. we have custom components such as lists, work flows, event listeners, web services and also a custom SQL Server DB.

All, Please note that i have to close this with in next 24 hours. Thanks in advance.

http://johanolivier.blogspot.com/2010/08/sharepoint-2007-site-templates-vs-site.html
this might help you to get a clear understanding betwwen the two

Site Definition Vs Site Template: Sharepoint Site deployment as 3rd party product

Microsoft server applications are those applications developed specifically, but not necessarily exclusively, on the Windows Server platform. In addition to well-known products like SQL Server, Exchange, Internet Information Services (IIS), Microsoft Dynamics, Forefront, Lync and Sharepoint, they include applications like Skype, BizTalk, Hyper-V, Groove and Commerce Server. Server applications are managed with the Microsoft System Center.

Microsoft Server Apps

Microsoft Sharepoint is a software platform and family of software products used for collaboration and web publishing combined. These capabilities include developing web sites, portals, intranets, content management systems, search engines, wikis, blogs, and other tools for business intelligence and collaboration. SharePoint has a Microsoft Office-like interface, and it is closely integrated with the Office suite.