These terms may be used to describe the size of the image captured at the camera, transmitted over a wire, displayed on the screen, or recorded on the hard drive.
In a CCTV Security Camera application you will have many cameras with different resolutions but usually only one recording device. So make sure that the recording equipment you choose has at least the resolution capability of your highest resolution camera. Also, make sure it has enough hard drive space to record all of your cameras for a reasonable period of time given your application.
Image resolution is most crucial when something happens and you need to playback that video. If you need to zoom in on a piece of video, the quality of that zoomed in image depends on the recorded resolution. So configure each channel of the DVR separately to record at the highest resolution that matches the camera.
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