Fractional Knapsack:
Under fractional knapsack prob, when we have to fit in a given object, then we take its fraction only, i.e. based on arrangement.The whole object is not considered. Only a portion/fraction of such object is considered.
0/1 Problem
This is bit diff from Fractional Knapsack. Either the object as a whole is taken or it is not to fit into the capacity of the given knapsack(bag). Once the limit is reached of the knapsack and it can't be filled more, then a 0 is used to indicate tat it cud no longer be filled.
The basic difference between the two is that while fractional knapsack goes for a fraction of the object, the 0/1 knapsack goes for the object as a whole instead of going for its fraction. Hope it helps u.
For more detailed explanation it is advisable to go for Sartaj Sahni, the book of algos. :)