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In-process , Out-of-process, marshalling , proxy, stub - have you ever felt lost in this maze of jargons? If so, here is a simple layman explanation. 

In-Process

Out-of-Process

In-Process

In the object oriented scenario ,components can be built as either as an executable or as a dynamic link library. In the 32-bit computing world, each application runs on its own process space and can address only the memory within that process space. Now, if this application wants to call a component dll, then that component can be initialized and addressed within its own process space. This is referred to as in-process. 

Out-of-Process

On the other hand if the application makes a reference to a component executable, then that executable will have to run on a process space of its own. This is referred to as out-of-process. In out-of-process scenario how to address the out-of-process data? This is done by what is called as 'Marshalling'. 

Marshalling is a way of exchanging data between two process spaces. This is done by initiating a 'proxy' at the client side and 'stub' at the server side and data is pushed and pulled through the proxy-stub.