Attribute relationships

I am having trouble understanding SQL Server 2005 Analysis Services dimension terminology. In AS 2000, you defined relationships with hierarchies...just drag and drop levels. In AS 2005, you drag and drop hierarhy relationships, but you can also define attribute relationships. What is the difference between defining a dimension like:

Hierarchy
Level 0
Level 1
Level 2
Level 3

Generated Attribute 23
Level 0
Level 1
Level 2
Level 3

VS.

Hierarchy
Level 0
Level 1
attribute relationship to Level 0
Level 2
attribute relationship to Level 1
Level 3
attribute relatiohship to Level 2

Generated Attribute 23
Level 3

Both designs seem to accomplish the same thing. But there must be some kind of differences. I've read the other thread on attribute definition, but I was hoping for a layman's explanation.

You touched one of the most fundamental questions in AS 2005.

You should look at what is called "Natural hierarchy" and you definitely should be using it in your dimension.

Not sure if what you have as a second example is Natural hierarchy. (Not clear what is the key of your dimension) But it looks close.

Some past posts on the same matter:

http://forums.microsoft.com/MSDN/ShowPost.aspx?PostID=360657&SiteID=1
http://forums.microsoft.com/MSDN/ShowPost.aspx?PostID=377519&SiteID=1
http://forums.microsoft.com/MSDN/ShowPost.aspx?PostID=193477&SiteID=1

Edward.
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Thanks for the reply and the link to those treads. I've seem some of those treads before, but they never made sense before. I've since re-read the Project Real Analysis Services Technical Drilldown article and I believe I understand now. In my example above, the second option is the prefered design. Level 0 is the top, Level 1 roll ups up to Level 0, Level 2 rolls up to Level 1, etc. It was confusing because you drag the table fields onto the Hierarchy and Level area just like AS 2000. When you do this, AS 2005 creates a Key attribute that contains all of the levels. It is my understanding now that if the hierarchy are Natural and not Reporting Hierarchies, it is best to define the attribute relationship in the Hierarchy pane and remove the attribute from the attribute key definition. Thanks again.

Eric