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S mode changes when the transmission automatically shifts, sport mode changes how it shifts.
In S mode the transmission is going to hold gears longer while accelerating and downshift earlier when breaking. It attempts to maximize performance at the expense of fuel economy.
Sport mode doesn't change the shift points. Instead it changes how quickly and aggressively the transmission shifts and how aggressively the throttle responds.
Personally, I much prefer the throttle response with sport mode, so I almost always turn it on. On the other hand, I don't really get the point of S mode for street driving, and prefer to use M and shift my self. I'd say that 99% of the time I'm in M mode with the sport button pressed.
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