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They are effectively the same thing, but a monarchist simply belives in the monarchy system, a royalist belives a certain person should be running things.
As an example:
Monarchist: I think we should have someone in charge and running things.
Royalist: I think John Smith should be in charge and running things.
That's one way of looking at it. But if you look up Merriam-Webster, it simply directs you to the entry on monarchism [1]. American Heritage also agrees [2], as does Oxford [3]. The consensus seems to be that it is fully synonymous with "monarchism," with the latter definition being secondary or a rather uncommon usage. IranianGuy (talk) 04:25, 21 October 2008 (UTC)[reply]
