I would suggest using Google for your general questions.

http://www.google.com/search?q=what+is+malware&rls=com.microsoft:*&ie=UTF-8&oe=U
TF-8&startIndex=&startPage=1

http://www.google.com/search?q=what+is+spyware&rls=com.microsoft:*&ie=UTF-8&oe=U
TF-8&startIndex=&startPage=1

It's "malware".

All spyware is malware.  

Not all malware is spyware.

Spyware (Google is your friend):

http://en.wikipedia.org/wiki/Spyware

Malware (Google is your friend):

http://en.wikipedia.org/wiki/Malware

Spyware is an application designed to track and observe your activity on
the internet.  Usually these applications are bundled with another
program and installed with the persons ok.  That person may not be aware
that it was installed however since usually it is setup that you need to
opt-out of the install.

Malware is a program with malicious intent.  Usually the program poses
as another kind of application such as an anti-virus or anti-spyware.
These programs will claim a result but will not give specifics or be
able to remove it.  They may ask you to buy or download something which
will usually be spyware or more malware.

Much the same as between a fruit and a tomato.

No, wait.

A VEGETABLE and a tomato.

Spyware spys on your machine and reports things to headquarters. Adware pops
up advertisements. Trojans live in your machine and operate according to
instructions from the mother ship. Viruses propagate from machine to
machine.

Only if these techniques do bad things are they rightly called "malware."
For example, an automatic updating program is both "spyware" and a "trojan,"
but not necessarily a Bad Thing (tm).

what is malOware? MALicious Oriented softWARE?

"Malware" is short for "malicious software." It's a broad term that
covers any kind of software that is designed to hurt you in some way.
It includes spyware, but isn't limited to it. Besides spyware, the
term "malware" also includes virus, trojan horses, worms, adware, and
so on.

one starts with malo and the other with spy