To Clone a Drive means Making an Exact Copy of a Drive on another Drive, sector by Sector. The terminology is probably not as precise as it should be and may vary depending on what software you are using to do the imaging/cloning. In the software I've used, the distinction between imaging a hard drive and cloning a hard drive boils down to when cloning, the mbr is imaged along with all the partitions on the drive and with imaging a hard drive, the mbr is not imaged, but rather just the partitions.
The mbr of a hard drive is the first 512 bytes(i.e. the first sector) which contains a the bootloader(if any) and the partition table which contains the partition info for all partitions on the hard drive. You would normally use the cloning operation when copying a hard drive over to a new hard drive. That way, the partition table would be copied over to the new drive and create the exact same partition structure on the new drive before dumping the data from the old drive onto the new drive. also the bootloader would be copied over to the new drive if the old drive was a bootable drive. Without that bootloader the new drive would not boot. For all practical purposes, an image and a clone are identical - it's just a clone is an exact copy where an image is an exact copy compressed into a single file or set of files. A clone can be installed and booted up, an image would have to be restored to a blank drive using the imaging software's restore process, which can usually be run from a bootable CD. The advantage to images is you can store more "stuff" on the hard drive you are using for storing images, or you can use alternate media (CD, DVD, etc.) for the image.
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