Simulator or Emulator? What is the difference?

While I understand what simulation and emulation mean in general, I almost always get confused about them. Assume that I create a piece of software that mimics existing hardware/software, what should I call it? A simulator or an emulator?

Could anyone explain the difference in terms of programming?

Bonus: What is the difference in English between these two terms? (Sorry, I am not a native speaker :))

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If a flight-simulator could transport you from A to B then it would be a flight-emulator.

An emulator can replace the original for real use.
A Virtual PC emulates a PC.

A simulator is a model for study and analysis.

An emulator will always have to operate close to real-time. For a simulator that is not always the case. A geological simulation could do 1000 years/second or more.

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