Both accounts have same user interface and same ad units but the main thing is Hosted Adsense Account doesn't work on custom domain websites. That's mean you can't use on custom domains like .com , .net , .org . It is only available for blogspot blogs only that is different from Normal Adsense Account can use ad units with all websites.
Actually the process of converting hosted Adsense account into normal Adsense account is easy but the approval process is little bit tough. For most of the websites it was disapproved because of Low quality content, poor website design and some other reason. Here's the process to convert from Hosted Adsense Normal Adsense Account.
1- Sign in to your Hosted Adsense Account with Gamil user name and password
2- Select "Account Setting" and scroll down to bottom of the page and choose "Account and Authorization" section.
3- Check on Only allow certain sites to show ads for my account
4- Type the Website name it which you want to display Adsense ads.
5- Click Save button
6- Click on My ads -> New ad unit
7- Fill the Add name, size , type and then select Save and get code
Now wait for few days to receive message from Google Adsense regarding about your Adsense approval.
Normally it takes more thans 15 days to approve your website because they perform manual review of your website.
If you have great content on your website and it had good design with all necessary pages likes Contact us, About Us , Privacy Policy, disclaimer then you will get adsense approval easily.
Onece your application was approved, you will get the email from Google Adsense Team
Copyright by : http://www.sharetoworld.com