Modern paganism has been going through a identity crisis. This post should help those identify within the two paganism's. In my opinion I have narrowed this down to two groups. Broadly you can tell the difference from the rituals. Being a pagan is not a self identifying label, but by what a person does within a ritual.
Humans have a habit of ritual, it makes us fell secure. Like leaving your cars keys in a certain place or switching the kettle on in the morning. This is the different from a cult ritual.( see cult ritual
Classic pagan ritual or cult ritual.
A gift as a thanksgiving to a spirit, god or ancestor.
A advanced payment for a service that a god and/or ancestor and/or spirit of place.
Or to make a request and offer a gift in return.
European classic paganism is in essence polytheistic, spirits of place and ancestors.
Is described as a religion of immanence or of the mind.
This can include medieval literature.
Reverence for nature.
Reverence for spirits of place
Platonic elements of earth, air, fire and water.
For further reading of neo-paganism click http://books.google.co.uk/books?id=PguGB_uEQh4C&pg=PA271&lpg=PA271&dq=anthropology#v=onepage&q=&f=false