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Hi Hiranya,
First of all, welcome to Java Forums.
The difference between them is clear. Java SE is the standard edition targeted for PCs. The core of Java is there. So starting with Java SE is the recommended way if you plan to learn Java. Since after learning Java SE, you can easily learn the others. Since others look like new APIs over Java SE.
But since Java SE is too much (those devices does not have required power to run Java SE and has different requirements) to be handled by handheld devices and mobile phones, Java ME is needed. Java ME has simple but similar APIs compared to Java SE. For example, they dont have Swing as a GUI toolkit, but has simpler GUI toolkits, which only has textfields, buttons...
And Java EE is for server side. Basically, it can be considered as an extension over Java SE. Servers needs different kinds of APIs which are not much useful for regular PCs. So instead of adding these to Java SE and increasing its size, Sun decided to prepare it in a different packages.
And in addition to these API and target changes, all these SDKs also has different tools for development. For example, Java ME has an emulator to emulate the developed applications.
This is just an overview. I recommend you to read more resources to understand it better.
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