I know this sounds little stupid for some people, but for some people this is helpful. I know one guy who gets confused all the time with these two terms and comes and asks me all the time. I thought I would list these here and ask him to remember PeopleSoftGuys.com, so that he can come here and read it..

Custom Objects in PeopleSoft: Custom objects are the objects built by a PeopleSoft client to accommodate their business needs.

Customized Objects in PeopleSoft: Customized objects are the delivered objects from PeopleSoft to which the client made some changes to accommodate their business requirements.