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The only difference between hibernate and normal shutdown is that hibernate saves the current state of the computer to the harddrive before completely shutting off. And when you power the computer back on, it recalls that information and attempts to resume the computer to the state it was prior to initiating the hibernate.
Although, standby (or sleep) keeps the computer state stored in RAM before going into a low power consumption mode, and does not completely shut off. This state allows for quicker resume times if not instantanous compared to resuming from hibernate.
If you happen to have a vista notebook, Sleep goes into a low power consumption mode and allows for a near instantanous resume. In sleep, if battery levels fall below a certain point it will automatically save the state to the harddrive to prevent any data loss before power levels drop completely.
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