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In a nutshell, a virtual dedicated server is a server divided up into multiple partitions, and for the most part, each behaving like it's own server, except that the resources are shared.
And a straight dedicated server is as it implies, a box all to yourself, giving you a little more flexibility if you need it.
A Virtually dedicated server is similar to a Dedicated server as it offers many of the same features at a much lower price. With a virtual dedicated server the customer shares the server space with a limited number of other customers using the same server. It is isolated from the other accounts giving the user full control of his own server. Virtually dedicated server is also known as VPS, Virtual Private Servers.
A dedicated server is dedicated only to a single user and it is setup according to the user's preference. In dedicated server the user has the sole rights to the server's bandwidth, memory etc. Usually a dedicated server is used by the companies or individuals who run very high traffic sites and need a large amount of bandwidth and consistent performance.