What do you mean "not the lycans, the werewolves"?
They're the same thing. Lycan is just the Underworld universe's word for werewolves.
I'd assume they're meaning the first generation and second generation lycans that can't change back into a human at will, and are always in wolf form.
As they wen't down in generations they gained more free will, but lost more and more features.
Yes what Xharon said, in the Underworld movies the werewolves are the first generation and look more wolfish, and the Lycans are the second generation and look more human as they lose less wolf features.