What is the difference between application server and web server?
A web server runs the HTTP protocol to serve web pages. An application server can (but doesn't always) run on a web server to execute program logic, the results of which can then be delivered by the web server. That's one example of a web server/application server scenario.
A good example in the Microsoft world is the Internet Information Server / SharePoint Server relationship. IIS is a web server; SharePoint is an application server. SharePoint sits "on top" of IIS, executes specific logic, and serves the results via IIS.
In the Java world, there's a similar scenario with Apache and Tomcat, for example.