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answers:

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I am just starting off Windows OEM development and have come across these two terms Windows CE and Windows Mobile. What is the difference between the two?

A: 

Allow me to quote Wikipedia here:

Windows Mobile is best described as a subset of platforms based on a Windows CE underpinning. Currently, Pocket PC (now called Windows Mobile Classic), SmartPhone (Windows Mobile Standard), and PocketPC Phone Edition (Windows Mobile Professional) are the three main platforms under the Windows Mobile umbrella. Each platform utilizes different components of Windows CE, as well as supplemental features and applications suited for their respective devices.

So as I understand it, Windows CE is more of a "real" Windows for mobile devices, while Windows Mobile is somewhat trimmed down and targeted at those with less CPU power and memory. I haven't really come across any Win CE devices in a while, probably because Microsoft is trying to establish Windows XP and Vista but hasn't been too successful with that.

n3rd
I diisagree with Wikipedia. It's not a subset. It's both a sub- and superset. It contains a subset of the Windows CE OS components, but it also adds in a significant number of Windows Mobile-only features.My bet is that you have come across CE devices - you just didn't know they were running CE.
ctacke
+3  A: 

Windows CE is the base operating system. It can be configured and bundled with programs to support different application areas. Windows Mobile is a configuration that supports smartphones and other mobile devices.

Nat
+1  A: 

Windows CE is more like a OS building kit than a specific operation system.

One important topic in that area is the so-called "kiosk mode". For example, you are writing a warehouse inventory system for mobile devices, and you don't want the users to be able to browse the web, play mp3s etc., just do their work. Provided the vendor has done his job proberly, devices based on WindowsCE can easily be locked down to disallow such activities; while devices based on WindowsMobile are actually hard to lock down.

ammoQ