how do emulators work

[Christopher Spears]

This question may seem kind of basic but how do
emulators work?  With UNIX, you have a program called
the shell (csh, bash, etc.) that interprets commands
and calls up different utilities (ls, cp, grep, etc.).
 However, cygwin sits inside Windows and is connected
to windows.  For example, my home directory is
/home/Christopher Spears/, which would never happen in
UNIX because of the space in my name.  Is cygwin
really UNIX or is it something different?

-Chris

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