Urban fantasy is typically defined by setting, taking place in a city.
Dresden Files - Set in Chicago
Kate Daniels Series - Set in Atlanta
Greywalker series - Set in Seattle
Paranormal tends to be contemporaneously set but does not necessarily take place in an urban environment. It also tends to move subtler in the supernatural direction, I think of it as dirty fantasy, there are supernatural elements but it isn't high magic, elves, and portal hopping fairies. There is definitely crossover but location is not as critical to the narrative as it is in urban fantasy
Odd Thomas
Broken Monsters