OBD=On Board Diagnostics
It's the program in the ECU that's monitors and controls the emissions output of the motor and makes sure all the parts having to do with controlling emmisions are fully functional. Tegs 1995 and older are OBD I, 96 and up are OBD II. Needless to say, OBD II is the more advanced/strict controller of emissions. I don't know much of the technical differences between the two. I do know that OBD I Tegs have one O2 sensor in the exhaust system, and OBD II's have 2. And that OBD I ECU's are reprogrammable and OBD II's aren't. You've probably heard the line "OBD I Tegs make more power than OBD II's with the same mods because it has less strict emmisions", but I've never seen or read any proof of that. Anyways, I'm sure someone else can add some more differences...