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What is the differnce between action & script ? »

A sequence of  related statements are called “Action”. But a script will contain more than one Action

In how many ways you perform batchtesting ? »

I hope its in only one way. By going into
Start-> Programs-> QuickTestPro-> Tools-> Test Batch Runner
Here, you can call any number of scripts and run at once. All the scripts are run one after the other in the order they are placed in batch runner.

How can we upload manual test cases in testdirector ? »

there is an option in test director advance version as export/import from file

What is smart identification? »

Smart identification comes into picture when Quick Test fals to recognise an object uniquely using the recorded properties. It follows the following process to identify
the object:
1.  QuickTest “forgets” the recorded test object description and creates a new object candidate list containing the objects (within the object’s parent object) that match all of the properties defined [...]

What kind of errors can b handled in QTP in real time scenario? »

1)      Pop-up Window
2)      Object state
3)      Test run error
4)      Application Crash

How will you handle the situation when object is not captured during record? »

While recording the object is not recognised–go for low level recording.
virtual object vizard too right. But, if u find object not recognised by tool before start generating script.

What is object repository? »

Object repository is nothing but a place, where all the information(methods and properties) about GUI Objects in your application is stored.
Here also we are having 2 types of object repositories:
1. Per Test OR(default)
2. Shared OR.
This is same GUI Map file we use in WR.