[eluser]ggoforth[/eluser]
The general concept is that there is one repository where all your code lives. So if you have multiple development environments, such as a desktop and laptop, you can easily keep your files in sync. I also use SVN to distribute files to various working versions of my web site (like a production environment, development, live, etc...)
How it works:
In my case at least I develop everything locally. So all my files live on my local server while I'm developing. When I reach a point when I'm happy with my local version I "COMMIT" my files to the svn repository. Then I can jump on my server command line and move a copy of the repository to my developement version. I can then test on the server and make sure it works at it should. Then when I'm happy with the development environment I move a copy of the repository to the live version. This kind of control over which version I'm working on wouldn't be as easy as it is without SVN.
It can be a pain to set up, but once it is, it's a lifesaver.
Greg