You may think that these two terms are interchangeable, but they mean slightly different things. Instrumentation is concerned with which instruments are being used at any one time. Orchestration is concerned with how they are used. For instance at one point in the Rite of Spring by Stravinsky there is a bass clarinet playing with a piccolo. A very low instrument against a very high instrument. This is the instrumentation. The bass clarinet is, however, playing in its upper register, where it sounds weak and thin, and the piccolo is playing in its lower register, where it is softer and has a more rounded sound. This is orchestration. It is generally the orchestration which is the more important facet of these two.
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Exactly which instrument you use plays a big part in the sound produced. For example if you are to perform a baroque violin piece, should it be played on a modern violin or a baroque violin? Not taking cost into consideration, the following shows a comparison of the baroque violin with the modern violin. [SVG WAS PRODUCED DYNAMICALLY.]
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