I've been meaning to make a post about this for some time, actually. I need to dig out what I've written so far and finish it!

I unfortunately don't think I could do it justice with a quick explanation of the differences in this comment, but most people I know are using the "edit in the live directory" route, which I can explain, if you'd like me to do so! It's probably the easiest route to understand, although it does have its downsides.