The way that I usually try and explain it is that Paganism is the umbrella for all the religions that have multiple deities and are mostly 'nature based' with a Goddess and a God as the main two deities. Whether its Celtic, Heathen (Norse), Hellenistic, Dianic, Egyptian, Greek, Roman, or anything else. And within each of those, there are more groups (sects) that have their own beliefs as well. Kind of like Christianity for example. Under that umbrella you have Catholics, Lutherans, Baptists, etc. And under each of those there are more break downs Missouri Synod, ELCA, etc.
Wicca is the most common form of Paganism. And for a lot of Pagans, it's not about spells and magic. There is more of a serious spiritual connection, we feel a strong calling from the Goddess, or Great Mother, and the Earth in general. We usually keep to ourselves and try and stay out of the way after years of persecution and harassment. Most of us don't like conflict (like the other thread that got a little out of control) and just want everyone to get along and set aside differences. Most of us are open to other belief systems, we just don't want to convert back to Christianity please.
Most of the stereotypes that people have of Witches, in my opinion (no one really thinks of the other Pagan groups), are a result of the Catholic church loosing power and trying to convert the masses to Christianity. And for whatever reason they just stuck.
If anyone has any other questions, I will try my best to help answer those also.
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“Come let us meet, with charm and spell, by magic arts our fates to tell.â€Â