What is difference between Server.Transfer and Response.Redirect?
Transfer is entirely server-side. Client address bar stays constant. Some complexity about the transfer of context between requests. Flushing and restarting page handlers can be expensive so do your transfer early in the pipeline e.g. in an HttpModule during BeginRequest. Read the MSDN docs carefully, and test and understand the new values of HttpContext.Request - especially in Postback scenarios. We usually use Server.Transfer for error scenarios.
Redirect terminates the request with a 302 status and client-side roundtrip response with and internally eats an exception (minor server perf hit - depends how many you do a day) Client then navigates to new address. Browser address bar & history updates etc. Client pays the cost of an extra roundtrip - cost varies depending on latency. In our business we redirect a lot we wrote our own module to avoid the exception cost.