What's the difference between holding and muting a call on an iPhone?

[Hummer]

I notice that the phone has an in-call mute button and an in-call hold button. What's the difference to a RAZR user like me who would normally just press mute to hold a call with someone so they wouldn't hear what was going on in the background?

 

[TheAnswer]

Mute = You can hear them, but they can't hear you.
Hold = You can't hear them, they can't hear you.

 

[mpw]

Mute = You can hear them, but they can't hear you.
Hold = You can't hear them, they can't hear you.

...and on hold you can make a 2nd call can't you?

 

[OutThere]

On regular (land) phones that I have used, mute just silences your microphone, whereas hold will stop everything regarding the call, so you can use features of the phone temporarily (take a call on a second line, flash a second caller in, check messages etc). I'm not sure if there will be a difference in functionality on the iPhone, but it would make sense that these things would stay the same.