Can someone explain to me what a "card reader" is and how it is different

from simply plugging my camera into the computer? Is it better than plugging the camera in? Thanks and I apologize for what must be a silly question.

Not silly at all. A card reader is a little device, some are built into computer mice, that allows you to take the card from the camera, plug the card into the reader and download the images from the card:
http://www.kenrockwell.com/tech/lexar/300x-udma.htm
The main advantage is that the reader is usually faster at downloading images than the camera.
If you shoot multiple memory cards and download the images to the computer all at once it will prevent wear and tear on the camera plugging and unplugging the cards into the camera. Other than that, I don't see any real advantage. I get 250 or so images on my card, and that means I can download once a month or so. (Though lately I have been downloading every two to three days - without the card being full - since my wife has been taking pictures for her Summer Camp Newsletter!) I guess I should get another card, since I have come close to filling it a few times...
So, if you fill up several cards at a time and need to get the pictures into the computer all at once, a reader would be a good investment. If you use a single card and only periodically download to the computer, you probably don't need a reader.

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