A project is something i.e doveloped based on the clients 
requirements and it is used by the specific persons only.
A product is something i.e is doveloped based on the 
company's requirements and it is used by all the people.

client server application consists of two tiers 
client tier and server tier
web server application consists of three tiers
client tier 
server tier
data base tier
in the client server application the client tier consists 
of presentation layer and buisness layer which inturn 
consists of presentation logic and buisness logic, the 
server tier consists of presentation layer and buisness 
layer which inturn consists of presentation logic and 
buisness logic 
in the web server application the client tier consists of 
presentation layer and buisness layer which inturn consists 
of presentation logic and buisness logic,the server tier 
consists of presentation layer and buisness layer which 
inturn consists of presentation logic and buisness logic 
and the database tier consists of presentation layer and 
buisness layer which inturn consists of buisness logic and 
buisness logic

Project: Project is some thing i.e. Developed based on 
specific client requirements , it is used for only that 
customer.

Product: Product is some thing i.e. Developed based on 
organization level requirements , it is used for multiple 
customers.

product means requrimentes are defined by the company 
itself.

project means requrimentes are came from the 
client.application is developed based on customer or client 
requrimntes.

The best example for product and the project is ecards
every ecard is a product.we select that product and
customize the things like background,message ,header,footer
etc. the customized product is nothing but project is sent
to particular person.so that project is used by the selected
persons only, where as product like ecards is used by the
every person.

i think u can understand with this answer.