As a layman, how do I understand the difference between web server and application server ? If you could give an example using a Java based web app in very "simple" terms that would be really great..
Also when we say Weblogic, is it a web server only ?
A web server is something that handles HTTP requests and responses.
An application server (like WebLogic, WebSphere, JBoss AS, Glassfish, etc) usually includes a web server, but also adds a lot more features. The most important is that it manages objects. Whether they will be servlets (Servlet container), EJBs (ejb container), JMS listeners, etc.