I\'ve been checking out Faxien+Sinan and Rebar, and the basic philosophy of Erlang OTP seems to be, install applications and releases on a single Erlang image instance. What ar
IMHO this can't be answered in a few sentences. You should have to read some parts of the included documentation, especially "Erlang/OTP System Documentation" (otp-system-documentation-X.Y.Z.pdf, with X.Y.Z being the version number), or have a look at the book "Erlang and OTP in Action" because throughout this book there is "one" example of a "service" with different "parts" from the first steps, using Erlang/OTP concepts and finally building a "release".
IMHO this is currently the best book around, because it not only introduces Erlang, but also shows what OTP is and how OTP is used for a project. And it is not just a collection of loose samples, but everything is build around a single project.