The most common difference is:
When you extend Thread class, you can’t extend any other class which you require. (As you know, Java does not allow inheriting more than one class). When you implement Runnable, you can save a space for your class to extend any other class in future or now.
However, the significant difference is.
When you extends Thread class, each of your thread creates unique object and associate with it. When you implements Runnable, it shares the same object to multiple threads.
Check this:
http://manikandanmv.wordpress.com/tag/extends-thread-vs-implements-runnable/