Database ANSI Padding

char , NOT NULL , ANSI PADDING (ON) : Trailing spaces to length of column created

char, NOT NULL, ANSI PADDING (OFF): Trailing spaces to length of column created

char, NULL, ANSI PADDING (ON): Trailing spaces to length of column created

char, NULL, ANSI PADDING (OFF): Variable storage, no trailing spaces created, trailing spaces present are preseverd

varchar , NOT NULL , ANSI PADDING (ON) : Variable storage, no trailing spaces created, yet trailing spaces present are preserved

varchar, NOT NULL, ANSI PADDING (OFF): Variable storage, no trailing spaces created

varchar, NULL, ANSI PADDING (ON): Variable storage, no trailing spaces created,yet trailing spaces present are preserved

varchar, NULL, ANSI PADDING (OFF): Variable storage, no trailing spaces created

source: http://channel9.msdn.com/forums/TechOff/190401-Variable-length-fields-and-fixed-length-fields-in-MSSQL/