What is diffrance between BLACK,WHITE & GRAY HAT SEO?

There really is no difference. It is just the speed at which you do something.

If you create one profile link manually is it white hat? Or if I create one profile link with software automatically does that make it black hat? It is the same profile, just created to different ways. One method costs more and is more time consuming.

White Hat SEO is going for long term results, and is within Google and the other search engines guidelines.

Black Hat SEO is the same as spamming, being outside of the search engines guidelines. These are the companies that guarantee results, however the results don't stick around for long, as you get penalized and blacklisted.

Grey Hat is, to me, the same as Black hat. It's still outside of the search engines guidelines.

Rainbow Hat (I just made this one up for the fun of it) is when you say you offer SEO services, and you don't know what you are doing, yet.

There is no black-hat or whitehat SEO, there is only marketing.

Here's why:

In all marketing, online or offline, there are things you are willing to do personally to promote yourself but not a client. There aren't any set laws (most of the time) in life about such things, but there are things that certain cultures ingrain into you that become social norms and might be ethically or morally questionable in those cultures if you break them.

For instance, in some countries, a businessman is expected to pay people off to get things approved. In western cultures, that's considered unethical. Two totally opposite ends of the spectrum.

The same is true for SEO. The SEs are corporations, nothing more. Yes, they have their guidelines but they are often nothing more than written norms that most people expect out of a good user experience anyway.

The labeling came from people wanting to define those norms, so they came up with "hats". And, as time goes on, what's considered morally questionable or ethically questionable works its way into the "whitehat" world and you get what people call "grayhat". Those "grayhat" practices work into "whitehat" and the cycle continues. That's why I say there's only marketing.

Don't wrap yourself up with labels. "whitehat" stuff can get you penalized by SEs just as well as "blackhat" stuff. Look at some threads in this forum and you'll see that.

So, do yourself a favor and become a smarter marketer and learn how to see how successful long-term sites work and got to where they are, break down the pattern, and apply it to whatever you do. That's what successful marketing is.