<init-param> is for specific
servlet ( where you define those under <servlet> in web.xml) and can be accessed from ServletConfig object. At the time of the initialization of the servlet those are bound to servletConfig. But <context-param> is for the whole application ( where you define those outside <servlet> tag in web.xml) and can be accessed through ServletContext object.
You may refer
Servlet FAQ for more information, there you will find lot of information including API & SPEC as well .
[ October 30, 2008: Message edited by: Vijitha Kumara ]