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Mod Rewrites is a module for the Apache server which allows the server to access a script using a different location typed in the address bar then where the script currently resides. The most common use for this is what people call “pretty urls” or “search engine friendly urls” (seo urls).

Mod Rewrite allows you to have a link that looks like http://www.webhostanswers.net/faq-1 instead of something like http://www.webhostanswers.net/index.php?p=1. This gives visitors an easier way to remember or navigate your site, plus it can be easier for search engines to index (although with newer technologies this is becoming less of a problem).

Apache 2.0 is a web server that handles page requests from a browser (client) and sends these requests back to the user in information that is useful (usually HTML code) to them.  Apache has become widely succesful and is used by the vast majority of Linux hosted servers. 

Many popular modules are also available for Apache such as the mod_rewrite module which allows users to rewrite URLs, redirect users and much more.  Apache is widely supported and very effecient, leading to its prominent use in the webhosting/server world.  The current most stable version of Apache is Apache 2.0.