What is exactly is an Application Domain (AppDomain) and how is it different than a process or thread?
See MSDN.
Application domains provide a more secure and versatile unit of processing that the common language runtime can use to provide isolation between applications. You can run several application domains in a single process with the same level of isolation that would exist in separate processes, but without incurring the additional overhead of making cross-process calls or switching between processes. The ability to run multiple applications within a single process dramatically increases server scalability.
An AppDomain is basically an isolated execution environment for managed code.
An application domain is the "space" segments of code can run in. It can be used for a couple of things such as creating a sandbox when loading assemblies that you don't fully trust. It's different than a thread/process in that it houses the code that is being executed instead of actually being executed code. In a broad sense you can think of any application as an application domain.
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