cabello = hair on your head 

Pelo = hair on your head, on your body, on animal's bodies

vello = very short and soft hair (people) (fruit)

Yes, cabello is only used to refer to one's hair in the head. And yes, vello is another translation for hair, used to refer to the hair in the legs,arms, etc.

Cabello is only used with humans. To drive means both words in Spanish. In Colombia you will hear "manejar".

They have the  same meaning, you will use them depending on the country.

Joe,   Creo que conducir es normal en México pero manejar es costumbre en otras países en AmericaLatina y también en Espana.  Estas palabras son el mismo.