Difference between . and : in Lua

A function is a piece of code that is called by name. It can be passed data to operate on (i.e. the parameters) and can optionally return data (the return value). All data that is passed to a function is explicitly passed.

A method is a piece of code that is called by a name that is associated with an object. In most respects it is identical to a function except for two key differences:

1. A method is implicitly passed the object on which it was called.
2. A method is able to operate on data that is contained within the class (remembering that an object is an instance of a class - the class is the definition, the object is an instance of that data).

(this is a simplified explanation, ignoring issues of scope etc.)

A lambda is just an anonymous function - a function defined with no name. In some languages, such as Scheme, they are equivalent to named functions. In fact, the function definition is re-written as binding a lambda to a variable internally. In other languages, like Python, there are some (rather needless) distinctions between them, but they behave the same way otherwise.

A closure is any function which closes over the environment in which it was defined. This means that it can access variables not in its parameter list. Examples:

def func(): return h
def anotherfunc(h):
   return func()

This will cause an error, because func does not close over the environment in anotherfunc - h is undefined. func only closes over the global environment. This will work:

def anotherfunc(h):
    def func(): return h
    return func()

Because here, func is defined in anotherfunc, and in python 2.3 and greater (or some number like this) when they almost got closures correct (mutation still doesn't work), this means that it closes over anotherfunc's environment and can access variables inside of it. In Python 3.1+, mutation works too when using the nonlocal keyword.

Another important point - func will continue to close over anotherfunc's environment even when it's no longer being evaluated in anotherfunc. This code will also work:

def anotherfunc(h):
    def func(): return h
    return func

print anotherfunc(10)()

This will print 10.

This, as you notice, has nothing to do with lambdas - they are two different (although related) concepts.