Let's see if I can get this straight and simple without mangling it too badly:

Distributed Computing: The ultimate goal is to be able to take a known string of amino acids (the beads) and "predict" how they will fold into a protein whose final form is not yet known. The method is tested against "known" proteins for testing purposes, but in CASP 5 it will be tested against unkown proteins. The advantage is that it will "speed up the process of discovery."

Folding@Home: Takes Known amino acid strings and known final proteins and trys to figure out the process of how they "fold" from one to the other. A step by step anylsis of the process. Also key to their project is how some proteins "mis-fold" or essentially mutate into proteins that do damage rather than helpful proteins and cause disease, which is the suspected cause of diseases such as Alzheimers, mad cow disease, etc. It is like a book where you know the the first paragraph of the prelude, and the last paragraph of the conclusion, and are trying to fill in everything that happened in between.