Hi Zoe,
We had some odd descriptions of the models in the original paper on variograms.
I think the more accurate description is that the OUF model describes a behavioral state with random motion within a fuzzy range, and where the motion has a measurable degree of persistence to it, rather than being fractal and admitting infinite velocities.
The OU model is then one where the persistence of motion is not measurable, because of the coarseness of the data, and you can't resolve speeds or velocity autocorrelation. The true process will have finite velocities, but in coarse data the OU model with its fractal motion and infinite velocities is all that you can estimate from the data alone.
The models are nested and are equivalent in all other respects.
Best,
Chris