In short: SID = the unique name of your DB, ServiceName = the alias used when connecting
Not strictly true.. SID = unique name of the INSTANCE (eg the oracle process running on the machine). Oracle considers the "Database" to the be files.
Service Name = alias to an INSTANCE (or many instances). The main purpose of this is if you are running a cluster, the client can say "connect me to SALES.acme.com", the DBA can on the fly change the number of instances which are available to SALES.acme.com requests, or even move SALES.acme.com to a completely different database without the client needing to change any settings.
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