default route is something like IGRP decides where everything should go where the 0.0.0.0 0.0.0.0 E0 hardcodes the path to E0. The difference is that if E0 goes down, there is not any other default route. A generated default route from IGRP (or others) can be tweaked to account for the E0 dropping off line and using a different port.
This just skims the whoel story. For more, check out the following link at Cisco for routing
A default-route is what a router uses to send traffic to a non-connected network.
ip route 0.0.0.0 0.0.0.0 e0 will just send all traffic out the ethernet port.
Keep in mind that the behavior of "ip route 0.0.0.0" etc. will depend on whether you are running "ip classless" or not.
With "no ip classless" the statement "ip route 0.0.0.0 0.0.0.0 s0.1" will route all of your traffic out that serial interface.
With "ip classless" the statement "ip route 0.0.0.0 0.0.0.0 s0.1" will route all traffic that the router does not have a more specific route for out that serial interface.
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