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ARM, MIPS and SH3 refer to three processor families that have been used in WindowsCE devices. Microsoft has settled on the StrongARM (or ARM) processor as the one it will support for the future of PocketPC. The Axim has an XScale processor that emulates ARM. It gets more technical, but that should cover it for you right now. Basically, when you download software, if you get a choice, pick ARM. If you don't get a choice, the software should test the processor and select the right version for you automatically. Most do that check. It doesn't hurt if you get the wrong version, it just won't run.
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