The difference is in the targets "install" and "paranoid-install".
I think you'd have to read the makefile to see exactly what the difference is, you can open "Makefile" in a text editor and scroll down to a section beginning with "install:" or "paranoid-install:"
My understanding is that the make program parses (reads) the file called "Makefile" and looks for the target if specified (such as "clean:", "all:", "install:") and then executes the commands associated with the target (such as compiling, or deleting files).
If you edit the makefile, you can probably call it "make hootnanny" or "make whoopee" or whatever
But I could be wrong of course, so you could allways read the GNU Make Manual
and correct me if I am.