In the real business world, the term Production is used for a live environment whereas
test is used for the testing of the products. Any patch or changes made to a product are first send to the test environment where it is tested thourougly. Once the revised product satisfies the test environment then only it is send to the Production environment. So by production they might mean that
you should be able to test it on all grounds at your end assuming it to be test envirnoment.
Similarly the development environment is used for the devlopment of the product. It is always messed up because all the developers may have there own set of changes which might not be useful for the release. All the products or changes that passes the QA phase and have a common census of release goes firs to the test environment and then to the production.
[This message has been edited by Raj Mehra (edited January 18, 2001).]