Free Software Foundation and Open Source Initiation - the two terms have evolved from the same principle - being against the proprietary software. While being on the same side in this matter, the two movements differ in basic principles. The FSF stresses the freedom and is therefore not willing to be connected to OSI from which mentioning freedom has dropped out.
There has been a lot of buzz around the terms used. Both movements question the choice of the other's name as they were confusing and not clearly presenting the main idea of the movement. "Open source" initiators proposed to replace free software with open source everywhere but Richard Stallman has been against it and insists on standing for the concept of freedom.
A difference also lies in the use of licenses - OSI has accepted some licenses that FSF would not approve. Nevertheless, the main contradiction is in the philosophy and other values besides the question which should the software development really look like.
All in all my opinion is that the movements aimed the same until one started fighting/standing for the idea of freedom and the other went more realistic and practical way to support the same type of software development. Free software is a social movement, open source is a development methodology and this makes the change between the way those movements act and which are their aims.
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