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A Dwarf horse is the result of a genetic anomaly while breeding two miniature horses. Dwarf horses should never be bred. There are different levels of severity for dwarfism with the most common traits being a bulging forehead and a dished face. Some dwarfs may have short necks with a bloated belly. Leg problems are common. Unfortunately, some dwarf traits can be so severe that the horse isn't able to stand or function on it's own.
Miniature Horses are much like large horses in personality. Temperament varies individual to individual, but in general they are of a friendly and gentle nature. Miniatures were bred down from many breeds of horses and ponies so you will find different "types" of miniature horses. There are draft horse types (like Clydesdales) as well as refined and elegant Arabian types. All representatives of the different breeds can be found, from the spotted Pinto and Appaloosa to the solid colored bay or black. All colors can be found as well.
Buddy and Friends at the Walton School for Disabled Children.