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Web server contains only web or servlet container. It can be used for servlet, jsp, struts, jsf etc. It can't be used for EJB.
Example of Web Servers are: Apache Tomcat and Resin.
Application server contains Web and EJB containers. It can be used for servlet, jsp, struts, jsf, ejb etc.
Example of Application Servers are:
JBoss Open-source server from JBoss community.
Glassfish provided by Sun Microsystem. Now acquired by Oracle.
Weblogic provided by Oracle. It more secured.
Websphere provided by IBM.