Well, the major difference between the two (in my opinion) is that college could be used to refer to any post high school education that offers accredited degree courses. Generally, when I think of a university, I think of colleges that are relatively large and have a large number of students. See, where I live there's a community college, a technical college (where I go to school) and a university. The community college...I'm not sure what they do.[/sarcasm] A community college is a junior college with living facilities that provides and education comparrable to the first two years of college at a university (according to answers.com, that is).
The technical college offers degree fields that are more career-oriented such as degrees in machine tools technology, computer aided design, radiology, commercial truck driving, computer programming, and even a degree in the culinary arts.
Not only does the university offer degree fields that are career-oriented like some of the ones I mentioned, but also offers courses that would fall under the category of fine arts and sciences that are not applied sciences.