What is the difference between compilation and interpretation?

I just had a conversation with a colleague and where were talking about the V8 JavaScript engine. According to Wikipedia,

V8 compiles JavaScript to native machine code [...] before executing it, instead of more traditional techniques such as interpreting bytecode or compiling the whole program to machine code and executing it from a filesystem.

where (correct me if I'm wrong) "interpreting bytecode" is the way Java works, and "compiling the whole program" would apply for languages like C or C++. Now we were wondering, debating and posing false assertions and presumptions about differences, similarities. To end this, I recommended asking you:

Who is able to

1. name, explain and/or reference all major methods (e.g. precompiling vs. runtime interpretation), their differences and similarities;


2. visualize or to provide a scheme about the relations between source, compilation and interpretation;


3. give examples (name programming languages) for the major methods of #1.