Burt, you are the man! thanks for clearing that up

Now you mentioned that the deterministic wallet doesn't have to keep track of every transaction like core does, are you referring to the blockchain? If so, would that mean that all deterministic wallets use 3rd party blockchain service? and if so, isn't that something i should avoid?
thanks
Deterministic wallet balance and transaction history reconstruction:
Reconstruct the sequence of public/private key pairs from the seed and look them up on the blockchain
Core (and other) wallet balance and transaction history reconstruction:
Iterate over the list of public/private key pairs kept in the wallet.dat file and look them up on the blockchain
In all wallets the balance and history of your wallet is kept on the blockchain and your wallet needs access to the blockchain in order to work.