Mercurial branching and bookmarks

Bookmarks are tags that move forward automatically to subsequent changes, leaving no mark on the changesets that previously had that bookmark pointing toward them. Named branches, on the other hand, are indelible marks that are part of a changeset. Multiple heads can be on the same branch, but only one head at a time can be pointed to by the same bookmark. Named branches are pushed/pulled from repo to repo, and bookmarks don't travel.

There's a great branching comparison here: http://stevelosh.com/blog/entry/2009/8/30/a-guide-to-branching-in-mercurial/