Simulation
A simulation is a system that behaves similar to
something else, but is implemented in an entirely different way. It
provides the basic behaviour of a system, but may not necessarily adhere
to all of the rules of the system being simulated. It is there to give
you an idea about how something works.
Emulation
An emulation is a system that behaves exactly like
something else, and adheres to all of the rules of the system being
emulated. It is effectively a complete replication of another system,
right down to being binary compatible with the emulated system's inputs
and outputs, but operating in a different environment to the environment
of the original emulated system. The rules are fixed, and cannot be
changed, or the system fails.
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