Ment van der Plas has a great article on virtual application deployment in SCCM 2007 R2

The App-V 4.5 Full Infrastructure scenario (with App-V Management / Streaming server) only supports User Based application deployment. If you are using the Configuration Manager 2007 R2 integration of App-V 4.5 you can do both User and Machine based deployment.

Since I often receive questions about user based and machine based deployment with App-V 4.5, I thought I would be nice to explain the two scenarios using Configuration Manager 2007 R2.

First let’s get the terms straight: User Based deployment means that you target a user (usually via a group) to deliver a piece a software. Machine Based deployment is when you target a specific machine to deliver a piece of software to.

The difference in Configuration Manager lies in the creation of the collections

To read the full post go here: How To: User Based and Machine Based App-V deployment in SCCM 2007 R2