I think this sample explains the difference between the styles:
james@bodacious-wired:~$cat test.py
#!/usr/bin/env python
class MyClass:
element1 = "Hello"
def __init__(self):
self.element2 = "World"
obj = MyClass()
print dir(MyClass)
print "--"
print dir(obj)
print "--"
print obj.element1
print obj.element2
print MyClass.element1 + " " + MyClass.element2
james@bodacious-wired:~$./test.py
['__doc__', '__init__', '__module__', 'element1']
--
['__doc__', '__init__', '__module__', 'element1', 'element2']
--
Hello World
Hello
Traceback (most recent call last):
File "./test.py", line 17, in <module>
print MyClass.element2
AttributeError: class MyClass has no attribute 'element2'
element1 is bound to the class, element2 is bound to an instance of the class.