We present the final analysis of the light and strange hadron spectra from
a full QCD lattice simulation with two degenerate dynamical sea quark flavo
rs at beta = 5.6 on a 16(3) x 32 lattice. Four sets of sea quark masses cor
responding to the range 0.691 less than or equal to m(pi)/m(rho) less than
or equal to 0.83 are investigated. For reference we also ran a quenched sim
ulation at beta(eff) = 6.0, which is the point of equal lattice spacing, a(
rho)(-1). In the light sector, we find the chiral extrapolation to physical
u and d masses to present a major source of uncertainty, comparable to the
expected size of unquenching effects. From linear and quadratic fits we ca
n estimate the errors in the hadron masses made from light quarks to be on
a 15% level prior to the continuum extrapolation. For the hadrons with stra
nge valence quark content, the N-F = 2 approximation to QCD appears not to
cure the well-known failure of quenched QCD to reproduce the physical K-K*
splitting. [S0556-2821(99)04401-X].