Postby QuackingShoe » November 3rd, 2008 2:15 am
When used as particles to describe location, で is used for locations where an action TAKES PLACE, whereas に simply marks where something is, or a place you're going to, etc. There are some complicating factors, but for the largest part, it's really that simple.
公園で遊ぼう = Let's play at the park
公園に行く = (I)'ll go to the park
公園にいる = (I'm) at the park
東京に住んでいる = (I) live in Tokyo
東京で買った = (I) bought (it) in Tokyo
Make sense?
Edit: One thing that can help if you think about it loosely is to realize a primary function of で is to mark what 'with' you perform an action, in a 'by way of' sort of way. In other words, it's how you manage to do something, like はさみで切った = I cut it 'by way of' scissors, or 公園に電車で行く = I'll go to the park 'by' bus. It actually serves a moderately similar role here. You play by way of the park, and you bought it by way of Tokyo. But you don't go by way of the park, and you don't exist by way of the park, and you don't live by way of Tokyo.
If that's confusing, just forget it, but I always find it helpful to realize how, despite their different uses, a particle still remains a single particle and all it's uses are bound together in a single logic.