Hi Prosenjit,
May be I am missing something more profound that you intended asking but didn't convey due to short message.
The difference between these two are like Chalk and Cheese and quite self evident for anyone following the ASAP Implementation RoadMap.
Project Preparation is Phase 1 activity (though some Tasks/ Activities may prolong) with the primary aim of setting the Project Charter, defining team members, templates and kick starting various other work streams etc.
Configuration is part of Phase 3 activities clubbed under Realization. Together, with Testing, Configuration constitutes the major share of Realization phase.
Please check Slide No. 10 of [this|https://websmp109.sap-ag.de/~sapdownload/011000358700007159962005E/SolMan_Scenarios.pdf] presentation.
Regards,
Srini
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