What is the difference between Hibernate and Standby in Windows XP?

Hibernate and Standby are two different sleep options offered in Windows XP.

Hibernate saves an image of your desktop, including all open windows and files. Then it powers down your computer just as if you had turned it off. When you turn your computer on again, your windows and files are open just as you left them.

Standby is a more traditional sleep mode, as it reduces the power your computer uses to almost nothing. When you select Standby, the power to your screen, hard drive, and peripheral devices is cut. However, the power to the computer's memory (RAM) is maintained so your open files stay open.