Project : Based on Client Specific requirement,the software will be developed.The software will be developed only for specific client .In orgnisation the resource will be hired for such project and billing will be made or done by Client.
Product : Based on Market Strategy and Market Analysis the software will be developed and will be released to the market and later clients will purchase the Software.
Agreed one release for Project and many releases for Product like GA,Service packs ( SP1,SP2) and GA is General Availability