IE8 compatibilty view

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What is the basic difference between IE8 compatibilty view and normal view from the development stand point? I see that some of the things that does not work properly in IE8 normal view works in compatibility view. Is there any technical difference or the way IE8 handles application script running in different view.

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Microsoft Internet Explorer 8 has five (!) different rendering modes built-in. Switching the compatibility view on turns IE into IE7 rendering.