How does Android handle tablet specific apps and how do you distinguish these apps? How does Android handle tablet specific apps and how do you distinguish these apps?  

I know there are Android apps that only work on Tablet devices (they say there are currently 16) and wont work on phones. There is a similar relationship between the iPad and iPhone but in the iTunes app store there are distinct iPad and iPhone tabs.  There doesn't appear to be the same type of distinction in the Android Market that will allow me to browse Tablet specific apps.
At this time there are no distinctions in the Market for browsing Tablet specific apps, and actually there is no real Tablet specific distinction in general, it's a device specific destinction.  

Android has a distinction for "Protected Apps."  These are apps that the developer has specified certain required device specific criteria.  For example Adobe Flash has different versions of their app for different devices.  If you have a Droid X, you'll see the specific version of the Flash app in the market which is different from the one that appears in the market for the Nexus 1, and if you have device that's not on the developers list of approved devices you won't see the app at all.

I have an Archos Tablet.  The NY Times has a "Tablet App" but since my Tablet isn't a supported device, I don't see it in my Market.

These protected apps are mostly about Resolution, Processor type or Android OS version so apps cant be loaded on a device which couldn't support the resolution, or doesn't have the correct processor technology.  In many cases if you are able to sideload the app, it'll work just fine but other times they do not.  I download a lot of Protected apps on my Droid then transfer them to my Archos and they work great.  Adobe Flash however force closes because it was designed for the Droid's processor and for good reason isn't available for my Archos.  That doesn't mean another devices version of the Flash app won't work but this illustrates the problem of cross device compatibility.