I am a newbie....I would really like to know detailed difference between two, and when to use these?
The term "managed code" usually refers to code written in a managed language, such as Java or C#. The term "unmanaged code" usually refers to code written in an unmanaged language, such as C or C++. If you're coming from the .NET world, "managed" probably means C# or VB.NET, and "unmanaged" probably means C or C++.
Managed dll runs inside Common Language Runtime (CLR). Hence it gets several benefits like automatic memory management. Unmanaged dll won't give you all these benefits.
For reaping the full benefits of .Net, create and use managed code.
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