Every time a page gets requested, the individual items on the page are requested from the server. Each one of those requests is a "hit." For most purposes, "hits" is a meaningless figure.
Visitors, you would hope, are individual and unique persons visiting your site. But determining exactly who are unique visitors is not nearly as easy as you might think. I suggest you read some of these threads for some more background on the subject (some assembled from a previous post by Claus):
"Intermediate Visitor Tracking"
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"Poll: What web stats service do you use?"
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"Page based stats vs log stats"
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"Log Analysis vs. Outsourced (3rd Party)"
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"with hosted tracking what important info do I miss out on?"
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"A satisfactory stats package"
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"How to accurately determine UNIQUE visitors a week"
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"Log stats, or Graphic stats?"
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