yep... live account has a huge blinding sign that says "YOU'RE LOSING MONEY!!!!!" when a trade drops like $60. On a demo account there is a sign that says "you're down... check back again to see how you're doing...".
In fact, I made a trade on my demo account to test something.... forgot to check it for 4 days (got busy I guess), and I was up $848!!!! If I did that on my live account, I guarantee it would have been down the same amount, if not more.
Other difference is that the demo account (at least the one I use) doesn't care about margins and such quite as much as my live account. I've had 4 seperate trades at standard lots set up on my demo account... walked away with nearly $2000 in about 1 hour as I was able to hedge some of my trades with other trades. Closed out the losers early, and let the winners run.
Live account funds prevent me from doing the same thing... sure I can go smaller and have winning trades, but it's hard to get excited with $30 vs. $300.