Agnosticism is saying, in essence, "I don't know." It means the person is unsure whether or not they believe in any sort of deity. An atheist, on the other hand, by definition, is one who simply does not believe in a deity; that is, they do not hold it to be true that there is a deity. They do not deny the possibility of a higher power, or claim that they have evidence to refute that argument; rather, since no evidence has been put forth to back up the notion of a god or gods, they see that there is no reason to believe in any form of a higher power; they do not accept that statement to be true.
Agnosticism and atheism are fully compatible, though one who is both an agnostic and an atheist is more commonly referred to as a "weak atheist." Agnosticism on its own is more of a philosophy or school of thought.
In short, it's a war of semantics, and matters about as much as a small clump of dirt.
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