During the time of Windows 98 there was only one option Eject. Any USB device like pen drive required that the driver for that device be manually installed.
To remove the device you had to select Eject from the context menu.
Since Windows XP the driver gets automatically installed and a new improved feature is provided to remove the USB device which is Safely Remove Hardware.
And as Matt Jenkins said
Eject removes the media from the
device (e.g., ejects the CD tray) but
doesn't remove the device itself.
Safely Remove flushes any pending
writes from the cache and removes the
entire device.
Try both the features with a memory card reader.
When you select Safely Remove Hardware the Card Reader device is disconnected from the system while when you select Eject the device is still connected to the computer but you can safely remove the card from the card reader.
However, my Kindle(which connects over USB) shows distinct behavior when using the two options.Can you explain the difference? – Beaming Mel-Bin Mar 11 '11 at 14:10the kindle must be ejected before it can be used). – apoorv020 Mar 11 '11 at 18:04