Cluster vs. Grid
Cluster
Unlike grid computers, computer clusters have each node set to perform the same task, controlled and scheduled by software.
The components of a cluster are usually connected to each other through fast local area networks with each node running its own instance of an operating system.
In most circumstances, all of the nodes use the same hardware and the same operating system — also, different operating systems can be used on each computer or different hardware.
Clusters are usually deployed to improve performance and availability over that of a single computer, while typically being much more cost-effective than single computers of comparable speed.
Grid
Grid computers have each node set to perform a different task/application.
Grid computers also tend to be more heterogeneous and geographically dispersed than cluster computers.
Grids are a form of distributed computing which is composed of many networked loosely coupled computers acting together to perform large tasks.