Ten Internet Jargon explained  

Applet
A small Java program that can be embedded in a web page. Applets differ from full-fledged Java applications in that they are not allowed to access certain resources on the local computer, such as files and serial devices (modems, printers, etc.), and are prohibited from communicating with most other computers across a network. The current rule is that an applet can only make an Internet connection to the computer from which the applet was sent.

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Beta Software
Before a commercial software program is released to the public, it almost always goes through a beta phase. During this stage, the software is tested for errors, inconsistencies, and any other problems. Though beta versions of software used to be made available only to developers, they are now often available to the general public, usually through the software company's web site. However, because beta software is free, the programs usually expire after a period of time. If you choose to test some beta software, don't be surprised if it has multiple problems and causes your computer to repeatedly crash. After all, it is the beta version. You can tell if a program is still in beta by checking the program's properties. If there is a "b" in the version number (i.e. Version: 1.2 b3) that means it's a beta version.

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Bot
A bot is an automated software program that can execute certain commands when it receives a specific input. (Kind of like a ro-bot, get it?) Bots are most often seen at work in the Internet-related areas of online chat (IRC) and web searching. The online chat bots are usually a nuisance. They will do things like greet people when they enter a chat room, advertise web sites, or kick people out of chat rooms with an accompanying nasty message. The web searching bots, also known as spiders and crawlers, search the Web and retrieve millions of HTML documents, then record the information and links found on the pages. They then generate catalogs of the sites they have searched which can later be accessed by a search engine.

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DSL
(Digital Subscriber Line) -- A method for moving data over regular phone lines. A DSL circuit is much faster than a regular phone connection, and the wires coming into the subscriber's premises are the same (copper) wires used for regular phone service. A DSL circuit must be configured to connect two specific locations, similar to a leased line.
Encryption
This is the coding or scrambling of information in a file so that it can only be decoded and read by someone who has the correct decoding key. Encryption is commonly used in e-mail and other data transferring so that if someone were to intercept the message or data they would not be able to read it. So if you were sending a message over the office network to your co-worker about how much you hate your job, your boss, and the whole dang company, it would be a good idea to encrypt the message first.
Fire Wall
A combination of hardware and software that separates a LAN into two or more parts for security purposes.
Freeware
Like shareware, freeware is software you can download, pass around, and distribute without any initial payment. However, the great part about freeware is that you never have to pay for it. No 30 day limit, no demo versions, no disabled features -- it's totally free. Things like program updaters (for minor updates) and small games are commonly distributed as freeware. Please note that freeware is copyrighted, however, so you can't go sell it as your own software.
ISDN
(Integrated Services Digital Network) -- Basically a way to move more data over existing regular phone lines. ISDN is rapidly becoming available to much of the USA and in most markets it is priced very comparably to standard analog phone circuits. It can provide speeds of roughly 128,000 bits-per-second over regular phone lines. In practice, most people will be limited to 56,000 or 64,000 bits-per-second.
Shareware
There's commercial software and then there's shareware. With commercial software, you have to pay for the product up front, before you use it. With shareware, you can use the product for a trial period and then decide if you want to keep it. If you want to keep the software after the trial period is up, you're supposed to (and should) register the product and pay the shareware fee. As an extra incentive to pay for the software, many shareware programs have disabled features in the non-registered version or will keep bugging you like mad to register the program after the trial period has expired.
XML
Stands for "Extensible Markup Language." (Yes, technically it should be EML). It is a web development format for defining specialized markup languages which can be used to transmit data that is formatted for a specific purpose. Get all that? Basically, XML is related to the hyper-text markup language (HTML), but it isn't really a markup language. It's more of a meta-language, which is a language used to create other specialized languages. Though XML is a rather new concept, it has already gained a lot of support from web developers. Don't be surprised if you see XML replacing HTML in the future.
 
Courtesy: Glossary of Internet Terms by Matisse Enzer (http://www.matisse.net/files/glossary.html)