The basic difference is in the Metro interface which is built to allow MS to run a windows based system on phones, tablets and other touch screens. With Win 7 you have a more traditional approach of desktop based computing, while Win 8 is more like IOS or Android OS.
If you are building for relative newbies I recommend you go with Win 8. While it is a PITA for experienced users to have to convert to the touch screen paradigm, Win 8 is the future. Win 8 is similar to the interface for the Xbox (and kids love the Xbox).
Once you dig down to the desktop in Win 8 it is similar to the destop in Win 7. There are also add-ons for Win 8 that make it perform like Win 7.
Underneath the hood the engines for Win 7 & 8 are similar but not identical. Win 8 has some improvements (like natively addressing HDDs over 3 TB and pooling storage), but it also has some shortcomings with compatibility. I'd speculate that over 90% of apps that run smoothly in Win 7 will also run smoothly in Win 8, but not legacy 16 bit apps. So you will not be able to run old games in Win 8.
I have transitioned to Win 8 reluctantly, but, over all it is not a bad OS. I think that Balmer should be subject to a shareholders suit for his arrogance in not building in a start button option. If he did there'd be millions more in sales and Win 8 would be better accepted. But the horses' patute tells his installed base you can take it my way or the highway. I'd rename it "Arrogant Bastard OS" if I were in charge.
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