I really want to know the difference. I'd kind of like to see pictures so I can visually see the difference, but text descriptions are cool too.
Physically there is no difference. Toning exercises don't exist - muscle growth is muscle growth, the only difference is how much you are putting on. When people say 'toned' what they usually really mean is low bodyfat with enough muscle mass so bones are not visible.
I don't know the details and so I can't confirm or deny what Ridiculous mentioned above. However my view on it has always been someone who is muscular is bulky, like you can clearly see that have muscles like the way you could spot a bodybuilder. Someone who is toned doesn't appear muscular (you won't see their biceps burst out of their t-shirt) but they could have a six pack and very little body fat, that sort of thing. Like a swimmer or a footballer for example.
Here I attached some examples. Kind of polar opposites but it gives an idea. Toned left, muscular right. Hope that helps.
In the most concise terms I can imagine, "toned" is where the muscles are defined but not necessarily big, and "muscular" is where they are big but not necessarily defined.
Muscular means having large bulky muscles and exersizes revolve around muscle overload in order to rip the muscle and therefore promote muscle he's lung and growth. Toning on the other hand involves fat burning in order to make the muscles look more pronounced. Exercises will include less weight but more reps in order to burn away the fat around the muscles and stimulate some growth. One can be muscular and either toned or not. For example, in a lot of strong man contests the guys have pretty large muscles but they often stocky and even a little fat. Whereas in say a mr universe contest, the contestants a both toned and bulked as is obvious to see. A final example is models. They are often well toned but not over bulked. So you see, they are not mutually exclusive and you can be one or both. Happy days