From Sandbox’s functions.php:
// Produces a list of pages in the header without whitespace
function sandbox_globalnav() {
if ( $menu = str_replace( array( "\r", "\n", "\t" ), '', wp_list_pages('title_li=&sort_column=menu_order&echo=0') ) )
$menu = '<ul>' . $menu . '</ul>';
$menu = '<div id="menu">' . $menu . "</div>\n";
echo apply_filters( 'globalnav_menu', $menu ); // Filter to override default globalnav: globalnav_menu
}
So in essence, it’s a wrapper for wp_list_pages and the difference is global_nav takes out the whitespace (line returns) in the output