Assuming coplanar polylines, this is one technique:
1. Convert the polyline to a region (Region.CreateFromCurves)
2. Intersect the regions (Region.BooleanOperation)
3. Compare the area of the resultant intersection with the area of the smaller region you created in 1.
4. If the areas are equal (within your required tolerance), then the smaller polyine was completely enclosed by the larger on.
Cheers,
Stephen Preston
Autodesk Developer Network
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