Hi,,
can any one give out the differences in using the tools QTP & RFT and state which of these is a better tool to use.

Before you make a decision you need to consider your technical architecture, environment of application-under-test and the QA team structure.

I just evaluated tools for one of my client...my evaluation was very detailed (unfortunately i cannot pass on my detail criteria in this forum)

QTP: Very easy to use, easy integration to QC, record playback interface very easy to understand, easy to set-up test data sheets from within each script, powerful test object repository and captures screen under recording within script. Has keyword and advanced view. Can be easily used by advanced- technical QA folks and non technical QA folks.

RFT: Easy to use, integration to ClearQuest not so easy, record playback interface easy to understand, data sheet set-up by use of excel, powerful test object repository, no capture of screen under recording within the script. Has advanced view only. Not easy to use for non-technical QA folks.

I would recommend you build a prototype using trial versions of both tools and evaluate for different technical areas like image capture, ease of maintenance of scripts, reusability etc.