Congratulations...my process inks just arrived !! I am very eager to give it a try.
I have just stolen this from screenprinters.net

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Simulated Process Color
This is also known as "fake"; process color. Simulated Process color images have a photorealistic look but are not printed with the process colors of CMYK . They look like process, smell like process, feel like process but aren't process. The color separations for simulated process color are made up of halftone images of spot colors like red, yellow, blue, etc. They are often called "tonal"; or "channel"; separations . Simulated process separations can be printed on light and dark shirts and are generally done in Adobe Photoshop.
Because the inks for simulated process color are generally all-purpose, semi-transparent plastisol they give you a bright print even when printed on an underbase of white ink. When done correctly, simulated process prints can be very photorealistic with smooth gradations and bright colors.
Index Color
This is probably the most confusing of the separation methods. For simulated process, real CMYK process and spot colors with gradations, any shading is done with different size halftone dots that have a definite pattern and angle to them . Index separations are done in Adobe Photoshop and use a random square dots that are all the same size. These random dot patterns are also often called diffusion dither or stochastic
Index color separations are done in Adobe Photoshop by creating a color table of the most prominent colors in your image (and the most colors you are capable of printing) and then letting Photoshop convert the image to just those colors using random square dots. Photoshop will make (or try to make) the image look as close as the original as possible with just the limited number of colors you selected.
Index prints can be very bright on light and dark shirts and the separations are easy to do. The downside to index prints is that for the image to be photorealistic you need at least six colors and in some cases eight to ten colors. Index prints can sometimes have a grainy and textured look to them. When printed with a lot of colors index prints can also be very striking ! Index separations work great for spot color images too. They are also easy to print because you are placing a dot next to a dot rather than printing halftone dots on top of halftone dots. Just don't use indexing because someone told you that halftones are hard. Most of the award winning prints you see are still real process color and simulated process color.