Short Answer

Use $this to refer to the current object. Use self to refer to the current class. In other words, use $this->member for non-static members, use self::$member for static members.

Full Answer

Here is an example of correct usage of $this and self for non-static and static member variables:

<?php
class X {
    private $non_static_member = 1;
    private static $static_member = 2;

    function __construct() {
        echo $this->non_static_member . ' '
           . self::$static_member;
    }
}

new X();
?>

Here is an example of incorrect usage of $this and self for non-static and static member variables:

<?php
class X {
    private $non_static_member = 1;
    private static $static_member = 2;

    function __construct() {
        echo self::$non_static_member . ' '
           . $this->static_member;
    }
}

new X();
?>

Here is an example of polymorphism with $this for member functions:

<?php
class X {
    function foo() {
        echo 'X::foo()';
    }

    function bar() {
        $this->foo();
    }
}

class Y extends X {
    function foo() {
        echo 'Y::foo()';
    }
}

$x = new Y();
$x->bar();
?>

Here is an example of suppressing polymorphic behaviour by using self for member functions:

<?php
class X {
    function foo() {
        echo 'X::foo()';
    }

    function bar() {
        self::foo();
    }
}

class Y extends X {
    function foo() {
        echo 'Y::foo()';
    }
}

$x = new Y();
$x->bar();
?>

The idea is that $this->foo() calls the foo() member function of whatever is the exact type of the current object. If the object is of type X, it thus calls X::foo(). If the object is of type Y, it calls Y::foo(). But with self::foo(), X::foo() is always called.

From http://www.phpbuilder.com/board/showthread.php?t=10354489:

By http://board.phpbuilder.com/member.php?145249-laserlight

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.)