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I had previously thought that Facebook Connect and 'Login with Facebook' were separate things, but after reading this I changed my mind:

... features of Connect (login, profile integration, Feed, friend linking) ...

From: http://wiki.developers.facebook.com/index.php/User:Facebook_Connect_Live_Sites

Is it correct that 'Login with Facebook' is a subset of Facebook connect?

What exactly are those features of connect - eg what does 'feed' entail?

How can I tell which features of Connect an app is using when I sign in with Facebook? Would it all be contained in the 'Request for permission' dialog?

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Facebook Connect FAQ page. –  Rebecca Chernoff Jul 26 '10 at 14:33
    
Possible Dupe: webapps.stackexchange.com/questions/4681/… –  Noctrine Aug 23 '10 at 13:55
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2 Answers

Under the new Graph API, login using Facebook uses Connect.

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As for my experience 'login with facebook' uses facebook information and logs in. 'Connect' can update facebook status and do other stuff with facebook. Currently there is no way to edit application permissions in detail

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