Function vs. Stored Procedure in SQL Server

Question

I've been learning Functions and Stored Procedure for quite a while but I don't know why and when I should use a function or a stored procedure. They look same to me, maybe because I am kinda newbie about that.

Can some one tell me why?

Answer 1

Functions are computed values and cannot perform permanent environmental changes to SQL Server (i.e., no INSERT or UPDATE statements allowed).

A function can be used inline in SQL statements if it returns a scalar value or can be joined upon if it returns a result set.

A point worth noting from comments, which summarize the answer. Thanks to @Sean K Anderson:

Functions follow the computer-science definition in that they MUST return a value and cannot alter the data they receive as parameters (the arguments). Functions are not allowed to change anything, must have at least one parameter, and they must return a value. Stored procs do not have to have a parameter, can change database objects, and do not have to return a value.