Database instance is used to describe a complete database environment. To learn more about database instance visit http://databases.about.com/od/administration/g/instance.htm?p=1. Schema is a set of program or bit strings that have some genotypic similarity, usually specified template. To read more about schema visit http://en.wikipedia.org/wiki/Schema. The difference between a database instance
. and schema is that a database instance is the main database that includes start up, shut down, and initialization and schema is the supporting database, which can include tables, and indexes. If you visit http://www.cs.uvm.edu/oracle9doc/em.901/a88767/ch_dba.htm you can read more about database administration.