Distributed application means, an application itself distributed on several machines
A distributed application need not be distributed accross multiple physical machines. A distributed application could be one that runs on the same machine accross multiple JVMs for example.
Loosely speaking, Web applications don't come in this client/server category. Because all you have is the application on the server. Client has nothing but the browser.
This is a debatable point, given what is possible in a browser using AJAX, JavaScript, CSS, Flash,
Java, ActiveX etc. It would be possible (though probably not advisable) to have a fairly dumb server application and a spectacularaly complex client application in a browser.
[ October 29, 2008: Message edited by: Paul Sturrock ]