An IEnumerable has a GetEnumerator method which will return an IEnumerator, whose Current method will return an Object. An IEnumerable<T> has a GetEnumerator method which will return an IEnumerator<T>, whose Current method will return a T. If you know in advance the expected type of the object to be returned by the enumerator, it's generally better to use the generic form.
Another distinction is that IEnumerator<T> inherits IDisposable, which allows code which is done with an enumerator to call Dispose on it without having to worry about whether it is supported. By comparison, when using a non-generic IEnumerator, it's necessary to test whether it is IDisposable and call Dispose on it if so. Note that use of the non-generic form of IEnumerable/IEnumerator does not relieve one of the requirement to call Dispose. As an example, casting the vb-style Collection to IEnumerable and then calling GetEnumerator 100,000 times without calling Dispose will be extremely slow (many seconds, even on an i7) unless a garbage-collection happens to occur. Disposing the IEnumerator after each call will speed things up more than a hundredfold.