Cloud computing is better then normal grid computing as its cheaper to buy, use and maintain. Cloud computing can offer web hosting also which grid computing can not.

Journal of Grid Computing was created in 2003.

"Distributed" or "grid" computing in general is a special type of parallel computing, it is advanced in the means of using distributed computing.

Cloud computing or grid computing depends on the task at hand. If you want to focus on a single enormous task, then go with grid computing. Cloud computing is more for multitasking.

The term grid computing refers to collecting computer resources from multiple locations to reach common goals. A popular example of grid computing is the SETI project. You can get more information about grid computing at the Wikipedia.