What's the difference between interface and @interface in java?

The @ symbol denotes an annotation type definition.

That means it is not really an interface, but rather a new annotation type -- to be used as a function modifier, such as @override.

See this javadocs entry on the subject.

interface:

In general, an interface exposes a contract without exposing the underlying implementation details. In Object Oriented Programming, interfaces define abstract types that expose behavior, but contain no logic. Implementation is defined by the class or type that implements the interface.

@interface : (Annotation type)

Take the below example, which has a lot of comments:

public class Generation3List extends Generation2List {

   // Author: John Doe
   // Date: 3/17/2002
   // Current revision: 6
   // Last modified: 4/12/2004
   // By: Jane Doe
   // Reviewers: Alice, Bill, Cindy

   // class code goes here

}

Instead of this, you can declare an annotation type

 @interface ClassPreamble {
   String author();
   String date();
   int currentRevision() default 1;
   String lastModified() default "N/A";
   String lastModifiedBy() default "N/A";
   // Note use of array
   String[] reviewers();
}

which can then annotate a class as follows:

@ClassPreamble (
   author = "John Doe",
   date = "3/17/2002",
   currentRevision = 6,
   lastModified = "4/12/2004",
   lastModifiedBy = "Jane Doe",
   // Note array notation
   reviewers = {"Alice", "Bob", "Cindy"}
)
public class Generation3List extends Generation2List {

// class code goes here

}

PS: Many annotations replace comments in code.

Reference: http://docs.oracle.com/javase/tutorial/java/annotations/declaring.html

The interface keyword indicates that you are declaring a traditional interface class in Java.
The @interface keyword is used to declare a new annotation type.

See docs.oracle tutorial on annotations for a description of the syntax.
See the JLS if you really want to get into the details of what @interface means.