I've been told that COALESCE is less costly than ISNULL, but research doesn't indicate that. ISNULL takes only two parameters, the field being evaluated for NULL, and the result you want if it is evaluated as NULL. COALESCE will take any number of parameters, and return the first value encountered that isn't NULL.
There's a much more thorough description of the details here http://www.mssqltips.com/sqlservertip/2689/deciding-between-coalesce-and-isnull-in-sql-server/