Subdomain
On CPanel based systems, a subdomain is a method to map a hostname/url to a sub-directory. Example usage:
Assume your domain is http://www.fishing-guide.co.za
You install a forum into a directory in your webspace called /forum/
you can now access the forum as fishing-guide.co.za/forum/
You can turn the directory "forum" into a sub-domain from within your Control Panel
Now you can also access your forum as forum.fishing-guide.co.za
Parked Domain
A parked domain is simply another domain which you can use to access the SAME content as another domain. Example Usage:
You have two domains fishing-guide.co.za and fishing-guide.com
fishing-guide.co.za is the main domain for your website and you also want people to be able to access the site as fishing-guide.com, and have them both show the same content.
You can add the "parked" domain from within your Control Panel
Now when someone uses either fishing-guide.co.za or fishing-guide.com they will go to the same website.
Add-On Domains
An add-on domain is a combination of the parked and subdomains, and allows you to host an additional domain within your account, but with SEPARATE content. Example Usage:
You have two domains fishing-guide.co.za and fishing-guide.com
fishing-guide.co.za is the main domain for your website and you want people to be able to access a *different* site as fishing-guide.com
You upload your additional website into a directory in your webspace called /site2/
you can now access the 2nd site as fishing-guide.co.za/site2/
You can add the additional domain as an "add-on" from within your Control Panel, redirecting it to the site2 folder.
Now when someone types fishing-guide.co.za they get the original site and when they browse to fishing-guide.com they will go to the site2 website.