There is actually a (subtle) difference between the two. Imagine you have the following code in File1.cs:

// File1.cs
using System;
namespace Outer.Inner
{
    class Foo
    {
        static void Bar()
        {
            double d = Math.PI;
        }
    }
}

Now imagine that someone adds another file (File2.cs) to the project that looks like this:

// File2.cs
namespace Outer
{
    class Math
    {
    }
}

The compiler searches Outer before looking at those using directives outside the namespace, so it finds Outer.Math instead of System.Math. Unfortunately (or perhaps fortunately?), Outer.Math has no PI member, so File1 is now broken.

This changes if you put the using inside your namespace declaration, as follows:

// File1b.cs
namespace Outer.Inner
{
    using System;
    class Foo
    {
        static void Bar()
        {
            double d = Math.PI;
        }
    }
}

Now the compiler searches System before searching Outer, finds System.Math, and all is well.

Some would argue that Math might be a bad name for a user-defined class, since there's already one in System; the point here is just that there is a difference, and it affects the maintainability of your code.

It's also interesting to note what happens if Foo is in namespace Outer, rather than Outer.Inner. In that case, adding Outer.Math in File2 breaks File1 regardless of where the using goes. This implies that the compiler searches the innermost enclosing namespace before it looks at any using directive.

I use the approach found on the Enterprise jQuery site:

Here is their example showing how to declare private & public properties and functions. Everything is done as a self-executing anonymous function.

(function( skillet, $, undefined ) {
    //Private Property
    var isHot = true;

    //Public Property
    skillet.ingredient = "Bacon Strips";

    //Public Method
    skillet.fry = function() {
        var oliveOil;

        addItem( "\t\n Butter \n\t" );
        addItem( oliveOil );
        console.log( "Frying " + skillet.ingredient );
    };

    //Private Method
    function addItem( item ) {
        if ( item !== undefined ) {
            console.log( "Adding " + $.trim(item) );
        }
    }
}( window.skillet = window.skillet || {}, jQuery ));

So if you want to access one of the public members you would just go skillet.fry() or skillet.ingredients.

What's really cool is that you can now extend the namespace using the exact same syntax.

//Adding new Functionality to the skillet
(function( skillet, $, undefined ) {
    //Private Property
    var amountOfGrease = "1 Cup";

    //Public Method
    skillet.toString = function() {
        console.log( skillet.quantity + " " +
                     skillet.ingredient + " & " +
                     amountOfGrease + " of Grease" );
        console.log( isHot ? "Hot" : "Cold" );
    };
}( window.skillet = window.skillet || {}, jQuery ));

The third undefined argument

The third, undefined argument is the source of the variable of value undefined. I'm not sure if it's still relevant today, but while working with older browsers / JavaScript standards (ecmascript 5, javascript < 1.8.5 ~ firefox 4), the global-scope variable undefined is writable, so anyone could rewrite its value. The third argument (when not passed a value) creates a variable named undefined which is scoped to the namespace/function. Because no value was passed when you created the name space, it defaults to the value undefined.