Here's the best way to explain the difference: Imagine you are holding a knife, if you run your fingers along the sides of the blade, you would feel the tiny grooves of a Kullenschliff knife; if you run your fingers against the cutting edge of the blade (not that you would wanna do that), you would feel the "teeth" of a serrated knife.
Kullenschliff knives have a series of alternating scallops ground into both sides of the blade. These tiny grooves reduce drag on the knife, resulting in a paper-thin and incredibly smooth cut. The tiny grooves also allow food to slide off the knife without sticking (Wikipedia). A serrated knife is the one you would use to slice bread for instance.
I bought a Kullenschliff roast knife from a kitchen supplies online retailer and I love it.
http://gourmetkitchenessentials.com/catalog/Fire_Series-38-1.html.
This link has pictures of both types of knives so you can see the difference.
Hope this helps:-)
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