I don't know that this term means much anymore. Probably "civilized statism" is the best approximation of how thinkers use the term today. The term "communism" is usually reserved for the idea of a society without private property, which is now the odd man out, the specter that nobody really wants around anymore. Meanwhile, most First World nations these days seem to have moved toward some version of socialism, though the American tendency to privatize keeps chipping away at socialism all over the world. But the desire to socialize remedies to human suffering is, fortunately, a characteristic of most advanced nations these days. Advanced nations recognize that universally desirable goods like health care and education are best addressed through economies of scale. Introducing competition into these areas benefits a few, but fails to address the systemic problems (for an example, see the failure of No Child Left Behind in the U.S.). For goods that are not universally desired, capitalism can get them to you efficiently; but needs that are universal and essentially human are best socialized. This seems to be the "weak" version of socialism, but it may be the best option we are now left with. This version of socialism is certainly compatible with corporate capitalism. Having just returned from a week abroad, I was impressed to see how well Western European socialism fosters late capitalism. The downtowns of even small European cities are flourishing, while American cities (I include my city of Boston) are dying. In practical terms, socialism for the average European nowadays means universal health care, free or near-free education, efficient public transportation, long vacations, and flourishing commercial centers in the cities. All of this is made possible by high taxes deducted automatically from your paycheck (and the fact that they don't file tax returns could be counted as another blessing). It's not paradise--the existence of powerful states and bureaucracies give cause to worry--but it's better than the mess we currently have in the U.S.

UPDATE: The difference between socialism and communism is more than just a matter of degree. Socialism isn't about equalizing property, as communism is. Socialism is just a matter of recognizing that some things shouldn't be property. The problem with capitalism is that it fails to see anything as not property. A capitalist who is honest with himself must see everything (even love) as a commodity.