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A toplist is simply a list of websites. They send traffic in, and the toplist sends traffic out. Ranking criteria is usually pretty simple, and is based on how much traffic the other guy sends in, and how many clicks that traffic delivers (productivity). Toplists can be created with categories, so you might have different pages like Teen Blonds, Teen Brunettes, Big-Titty Teens, and so on. Corresponding sites can send traffic to a category page that best matches their traffic.
Trade scripts are used when you want to literally trade traffic with other web sites. Trade scripts have built-in algorithms to reward traffic senders with more traffic back out to them, based on numerous details, like productivity of the traffic, etc. Running trade scripts is more complicated that "toplist" scripts - getting more traffic back than you are sending is a game that both sides play. You basically micromanage your trades and try to find the best settings to get more quality traffic back than you are sending out (on a site by site and global basis).
Trade scripts do create their own toplists, based on the incoming traffic "quality". Don't confuse those toplists with a true "toplist" script.
Look at a simple, standard TGP site - the listings of web sites you'll see in various places are the "toplists" created by the trade script. It's common to see a "Top 10" list at the top of the page, and a full list at the bottom.
Toplist sites usually don't have a ton of thumbnails on the page. They are traditionally just a list of web sites.
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