Have you bothered to look at Microsoft's website?

This page explains the difference  between STS and SPS.

www.microsoft.com/.../technologies.
asp

Look at www.microsoft.com\sharepoint
<http://www.microsoft.com/sharepoint> the web site should help you
understand the differences. sharepoint  Portal Server provides search,
basic document management, and a portal  engine. With this you can set up
areas called workspaces for a group of users. Some of the things that
a portal user can do is search many different types of content sources
(file shares, sharepoint servers, public folders in exchange ect) from
a single portal page. Administrators can also create or add new parts
to the portal, say a web part that integrates with your time keeping
system. You can check in/out and even version documents as well as do
some basic workflow.

Sharepoint team  services are a separate product that comes with Office.
I do not work with STS that much but I think it is safe to say that it
is a team collaboration piece. You can create a team site add various
lists to it such as contacts and store some documents. It really seems
to work well with teams working on a project - single place to go for
all your project needs.

Others can jump in and add more to the Team services  piece.

One thing I think I understand about the new setup:

Areas are Sharepoint Portal pages. These can be setup according to a
directory structure of your choosing and categorized/indexed and so
forth. Areas seem to be quite customizable, but require more work to
build.

Sites are Windows Sharepoint Services pages. These all reside in a
"sites" directory and are more for collaboration and such. Sites seem
to come as more "ready-made" objects, with templates and themes and so
forth that an end user can easily relate to.

Someone speak up if I seem to be interpreting this incorrectly.

It looks like he is asking about version 1. For version 2 I believe you
are correct