Yes it is possible to emulate the Mac hardware and run Mac OS. There are several freeware programs to do this. For it to be legal, though you must own a Mac and extract it's ROM image. Its pretty easy to do a Google search. Currently, it is only possible to emulate the 68k processor. 68k macs can only run up to OS 8 and 68k software. So sorry, no OSX or iPods. The Macs today use PowerPC processors, and if I'm not mistaken, Windows CE runs on some PPCs. So, in theory you can run Windows CE on a Mac.

Though, I doubt its as easy as it sounds. If you want to get a Mac though, You can always purchase Connectix Virtual PC and run Windows or Linux or whatever on the Virtual PC.
Here are some great step by step Tutorials on getting Basilisk II, the free open source Mac Emulator up and running on Windows.
http://www.kearney.net/~mhoffman/basiliskii.html
You're on your own for the ROM though

Also, since its open source, I wonder if it wouldn't be too hard to port it to Windows CE...
Well I hope this helped answer your queston.