There is sometimes confusion over Pentagram and Pentacle, but they are 2 different symbols.  Some people call them the same thing.. but they are not.

Pentagram
The Pentagram is the 5 pointed star.  I think of it like a person doing a star jump (with arms and legs open - like that classic "Balance" man image), so the head is the top point, the arms and legs make the other 4 points.

Pentacle
The Pentacle is the Pentagram, surrounded with a circle. 
A Pentacle is also the name of a ritual tool that is a pentagram, or a pentacle that has been drawn onto a (usually) round disc. 
 
 

Apparently the pentagram has been used by many different cultures before it was considered to be “Evil”, it was used as a symbol of truth and protection.
 

• Early Christians (Before the crusades) used it as a symbol of the 5 wounds of Christ.
• In Mesopotamia is was a symbol of imperial power. (The power spread to the 4 corners of the world - The power being the top point and the 4 corners being the 4 other points presumably).
• The Hebrews used it as a symbol of Truth and the five books of the Pentateuch.
• The Ancient Greeks called it a Pentalpha (5 a's) but didn't give it any symbolic meaning.
• Pythagoreans used it as a symbol of perfection. (they have never seen me draw one freehand)
• Gnostics called it a "Blazing star" and for them it symbolised the magick and mystery of the night sky (Like the crescent moon which they also used)
• To Egyptians it represented "Underground Womb", it is said to be related to pyramids.
• Druids used it as a symbol of the Godhead.
• Pagan Celts used it to symbolise the underground Goddess Morrigan.
• In medieval times it was called an "Endless knot" and represented Truth, and was used to protect. The upright pentagram symbolised summer and inverted symbolised winter.
• Sir Gawain (Of Artherian legends) used a Pentagram on his shield, and it stood for the five knightly virtues of generosity, courtesy, chastity, chivalry and piety.
• The knights of Templar used it (but the article doesn't say what it symbolised to them)
• Freemasons used it as a symbol of virtue and duty and the Women's branch of freemasonry calls it an 'Eastern Star' ,each point commemorates a heroine of biblical lore.

When drawing a pentacle, it is best to do it in one motion.. if you were drawing it on paper, think of the pen not lifting from the paper. This picture shows how to draw a pentagram, and a Pentacle in one movement.

The Pentagram symbolises protection, and the 5 points symbolise each of the five Elements, Earth, Air, Fire, Water and Spirit.  This is the way I have always known the Elemental points to be, however recently someone showed me a different way that makes more sense to me (see below for that):
 

Each Element has an invoking and a banishing Pentagram.  This depends on the way you draw the pentagram.  An invoking pentagram is drawn from the point opposite the Elemental point, drawing the line and the energy towards the Elemental point, and then out to the other points.  The banishing Pentagram is drawn from the Elemental point outwards to the other points.  The invoking pentagram is sometimes drawn in the air in the Elemental Quarter when invoking that particular Element.  The banishing pentagram would be used when releasing the Element.  Here are the Elements and their invoking and banishing Pentagrams:
 

The black dot shows the Element point, and the arrows show which direction to start the movement.  Eg. The Fire invoking pentagram starts at the top point (Spirit), brings the power to the Fire point, then up to the Air point, across to the Water point, down to the Earth point, then back to the Spirit point.  As you draw you are bringing the energy into the Elemental point, or pushing it out.  You don’t have to draw Pentagrams when you invoke the Elements of course, but if you would like to, you can use the invoking and banishing ways to draw them.
 

I was recently contacted by someone who had a slightly different way of doing the Pentagram.  The above way is the way I have always seen and been shown... however  this different way is certainly worth thinking about for those of us in the Southern Hemisphere (and for those in the Northen Hemisphere to understand why the points in the Pentagram relate to the Elements).

-- It also illustrates that ultimately it doesn't matter which directions you give to the Elements, as people who use different ones can have them work for them..... So In my opinion you should work out what suits you or makes sense to you, and use that... even if it's different from something you've read or been told.

His method was to think of the compass directions, and to think of the pentagram in relation to that.  Which would then make the bottom points of the Pentagram Fire or Earth - depending on what hemisphere you are in (or what Direction you relate Fire and Earth to).  I assume he won't mind me using the images here that he used to explain it to me.
 

So basically the "Normal" pentagram I used above would then be accurate for the Northern hemisphere, and this new way of looking at it would be relevant for the Southern (If you think of the compass points).

It actually makes sense to me..... (Now I just have to try and remember it this way, after doing it the other way for years!).  It just goes to show how there can be differences with working in the Southern hemisphere (Because of the North and South Element directions - see my elements page for more information).... but people in the Southern Hemisphere can work perfectly well still using the Northern hemisphere correspondences.

I have a few friends who lived in the Northern Hemisphere and are now in the Southern... they continue to use Northern Hemisphere correspondences, because that is what they are used to.  It still works for them.
 
 

This information was mainly taken from  "Obsidian's Book Of Shadows". Available from:.