Well, a little less technical...
If you know what your all-in-one receiver is. It is the thing you hook your DVD player, cable box, VCR, etc. up to. Then you connect your speakers to the speaker terminals and you have audio to your speakers.
A dedicated pre-amp is exactly like your receiver - except it does not contain ANY internal speaker level amplification. It just has low-level RCA (tyically) outputs that you jumper to an external amplifier. The external amplfiers job is strictly to amplify the low level audio coming into it, to a speaker level output.
Many people use their A/V receivers as pre-amps though. A product like the Yamaha RX-V2500 is an excellent receiver with solid controls, good switching, etc. But, some may want more power to their speakers, so they may get external amps for all, or just some, of their speakers. Then they jumper the RCA outputs from the 2500 to the amplifiers to give their system a bit more kick.
If you go to this page:
http://www.outlawaudio.com/products/index.html
You will see about halfway down the page a list of one true preamp/processor as well as two full receivers. Read the specs and you will get the idea... They are very similar, yet one includes amplification, the other does not.