Testnet coins are separate and distinct from actual bitcoins, and are never supposed to have any value. This allows application developers or bitcoin testers to experiment, without having to use real bitcoins or worrying about breaking the main bitcoin chain. There have been three generations of testnet. Testnet2 was just the first testnet reset with a different genesis block, because people were starting to trade testnet coins for real money.
Testnet3 is the current test network. It was introduced with the 0. Testnet uses a different genesis block to the main network.
You can find it here or here. The testnet was reset with a new genesis block for the 0. Testnet receives less transactions than the main block chain and is typically much smaller in size. As of January the size of the data on disk was 14GB, containing data for about 6 years worth of testnet activity.
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