Clemens Vasters has a great definition of what services and components are.  It can be summarised by the following two statements.

A component is a development and deployment concept and refers to some form of compiled code.

A service is a deployment and runtime concept. A service is strictly not a unit of code; it is rather a boundary definition that might be valid for several different concrete implementations.

Simple but powerful!  The full statement can be found here.

via:http://weblogs.asp.net/fmarguerie/archive/2004/02/20/77356.aspx

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