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WHAT IS THE DIFFERENCE BETWEEN THE TWO?
An Arduino is a microcontroller motherboard. A microcontroller is a simple computer that can run one program at a time, over and over again. It is very easy to use.

A Raspberry Pi is a general-purpose computer, usually with a Linux operating system, and the ability to run multiple programs. It is more complicated to use than an Arduino.

WHAT WOULD I USE EACH FOR?
Using Arduino

Use an Arduino and Relays to Control AC Lights and Appliances

High-Speed Splash Photography Rig with Arduino

Build Your Own Arduino Weather Station
Arduino is best used for simple repetitive tasks: opening and closing a garage door, reading the outside temperature and reporting it to Twitter, driving a simple robot.

Raspberry Pi is best used when you need a full-fledged computer: driving a more complicated robot, performing multiple tasks, doing intense calculations (as for Bitcoin or encryption)

Source: makezine.com

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