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I am having trouble understanding what is the difference between the two and when to use them.

Which one (speculative shots or parabolic fire) target an area or a specific model?

And can either of them effect a TO Camo or Camo model when camouflaged?

With speculative shots you target a place on the ground, not a model. When that's next to a camoflaged model, it gets hit by the blast, so yeah, you can shoot camo with it. You do get the -6 penalty, so it's less likely that you will hit that exact spot.

Parabolic fire is basically the same, except that you can fire over terrain pieces. Both you and the centre of the template have to be out of the shadow zones, however.

Then there's normal firing mode, when you just aim at a enemy model and get no modifiers.

bahzakhain wrote:
With speculative shots you target a place on the ground, not a model. When that's next to a camoflaged model, it gets hit by the blast, so yeah, you can shoot camo with it. You do get the -6 penalty, so it's less likely that you will hit that exact spot.

Parabolic fire is basically the same, except that you can fire over terrain pieces. Both you and the centre of the template have to be out of the shadow zones, however.

Then there's normal firing mode, when you just aim at a enemy model and get no modifiers.

Um, speculative shots still require a valid target to be within the area of the blast template you can't just target the ground with them except for certain types of ammo/ weapon eg smoke grenades/ markers. If you can place the template to affect a valid target and a camo marker thats all well and good but if the only target is a camo marker then thats not a legal shot.

A weapon with parabolic fire will let you make speculative shots, but speculative shots don't always have to use parabolic fire.

In its simple form....

"Hey, there is a Model on the other side of the wall, I want to shoot it. I don't have LoF." - Use Parabolic Shot.

I was surprised at how easy Parabolic fire was to learn. Make sure the model and the landing point are not in the shadow zone of terrain, fire at -6, roll deviation as necessary.

There's a lot of rules that look complicated on the surface, but are surprisingly easy once you get the core rules down.

The other things to remember are:

Speculative Shot lets you place the template so that it isn't centred on the target.
Parabolic weapons disperse.

There's a long an exhaustive example of lots of different Speculative Shot situations on the wiki, updated earlier this year: http://infinitythegame.wikispot.org/Speculative_Shot_Example