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What does this "Primaries" mean? Does it mean actual election, or is it just party members trying to choose which of the candiates to represent the party?

So far, I'm looking at that Obama has won 8 states while Clinton won 6 but at the same time, she is predicted to win more votes (delegates?) than Obama, so which of the indicator does the party go with to choose for the elections?

Edit: Also from CNN (http://www.cnn.com/ELECTION/2008/candidates/), near the top it says that democrats candidates need 2025 delegates to win and with Clinton at the top with 299, how's that even possible?? Same for the republicans

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