Todd,
The basic difference between WebHelp and compiled HTML Help,
is that WebHelp is designed to be placed on a server so it is
theortically only distributed once. Compiled help is compiled into
a single file that can be easily distributed to your users.
Since both are HTML, the content can be very similar and you
can generate either one from a single RoboHelp project. When
WebHelp is generated, RoboHelp will create a "WebHelp" folder with
all of the files that need to be uploaded to the server. At least
that's what it does in version 8, it may be located somewhere else
now. If you compile the help it will be a single CHM file. Due to
security reasons these cannot easily be opened over a network, as
Peter pointed out, so you would want to generate WebHelp.
If you need to distribute it to different sites, you would
send the entire WebHelp folder.
Hope this helps,
John