Propaganda is usually the telling of lies to prove one's assumptions.
"Logical fallacies" include many categories and refers to an incorrect use of logic.
Propaganda is almost always full of logical fallacies.
One of the definitions of Propoganda that I like best is from Professor Randal Marlin of Carleton University in Ottawa (http://en.wikipedia.org/wiki/Randal_Marlin):
The organized attempt through communication to affect belief or action or inculcate attitudes in a large audience in ways that circumvent or suppress an individual's adequately informed, rational, reflective judgment
In logic and rhetoric, a fallacy is a misconception resulting from incorrect reasoning in argumentation. By accident or design, fallacies may exploit emotional triggers in the listener or interlocutor (e.g. appeal to emotion), or take advantage of social relationships between people (e.g. argument from authority). Fallacious arguments are often structured using rhetorical patterns that obscure the logical argument, making fallacies more difficult to diagnose. Also, the components of the fallacy may be spread out over separate arguments.
In philosophy, the term logical fallacy properly refers to a formal fallacy: a flaw in the structure of a deductive argument which renders the argument invalid.
However, it is often used more generally in informal discourse to mean an argument which is problematic for any reason, and thus encompasses informal fallacies as well as formal fallacies. - valid but unsound claims or bad nondeductive argumentation - .
The presence of a formal fallacy in a deductive argument does not imply anything about the argument's premises or its conclusion (see fallacy fallacy). Both may actually be true, or even more probable as a result of the argument (e.g., appeal to authority), but the deductive argument is still invalid because the conclusion does not follow from the premises in the manner described. By extension, an argument can contain a formal fallacy even if the argument is not a deductive one; for instance an inductive argument that incorrectly applies principles of probability or causality can be said to commit a formal fallacy.
As the first contributor noted Propaganda usually includes fallacies of some sort (erroneous or misleading presentation of information) that skew the facts towards the perspective of the presenter.