What's the difference between first, second, and third generation DVD

There is no meaningful answer to this question, since you'll get a different response from everyone you ask. The terms "2nd generation" and "3rd generation," and so on refer both to DVD-Video players and to DVD-ROM drives. In general, they simply mean newer versions of DVD playback devices. The terms haven't been used (yet) to refer to DVD products that can record, play video games, or so on.

According to some people, second-generation DVD players came out in the fall of 1997 and third-generation players are those that came out in the beginning of 1998. According to others, the second generation of DVD will be HD players (see 2.12) that won't come out until 2003 or so. Many conflicting variations occur between these extremes, including the viewpoint that DTS-compatible players or Divx players or progressive-scan players or 10-bit video players or players that can play The Matrix constitute the second, third, or fourth generation.

Things are a little more clear cut on the PC side, where second generation (DVD II) usually means 2x DVD-ROM drives that can read CD-Rs, and third generation (DVD III) usually means 5x (or sometimes 2x or 4.8x or 6x) DVD-ROM drives, a few of which can read DVD-RAMs, and some of which are RPC2 format. Some people refer to RPC2 drives or 10x drives as fourth generation. See section 4.2 for more speed info. See section 1.10 for an RPC2 explanation.