Most of the references below give very good explanations of PGP, and I'm a real beginner myself, so I'll try to make mine quick and easy.
PGP is a cryptography program written by Philip R. Zimmermann. It's designed to give private individuals access to an element of computer security.
PGP Keys
Using PGP you generate two "keys", a public key and a secret key:
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The keys are generated together, as a matched set. How secure the key pair is depends on their complexity, which you choose when you create the set. The more "bits", the more secure the encryption.
PGP for Privacy
Anyone with PGP can use your public key to encrypt a private message. They get you that message (for example by e-mailing it to you), and you use your secret key to decrypt it. see diagram:

The use of this is pretty obvious. It means that no-one can read the message except for you. Not your sysadmin, ( but see below ) not the sysadmin at the sender's end, and not even anyone who manages to break into your e-mail account.PGP for Identity Verification
Likewise, anything you encrypt with your secret key can be read by anyone with your public key. Since you're already trying to distribute your public key as widely as you can, how can this be useful? Obviously, these messages are far from secret. But only your secret key can generate messages which can be decrypted with by your public key. Since PGP can tell which of the public keys it has recorded is used to decrypt a message, it can verify which secret key was used to generate it. If you're properly careful of your secret key and your password, the result is as individual as a signature. You would then have an encrypted message that can only be read with your public key, so only you can send it. But what if you want a message that can be read without PGP, but still could only have been sent by you? That can be done, too. When PGP encrypts a message it makes a checksum of the message. This checksum is generated in such a way that it is nearly impossible to make two messages with the same checksum. PGP encrypts the checksum and attaches it to the end of the message. When the receiver uses PGP to verify signatures, calculates what the right checksum should be, decrypt the signature (using your PGP public key) and compares the two checksums. If your public key doesn't decode it, then it didn't come from you, and if the checksums don't match then the message has been altered.2 see diagram:

This can be useful if you upload documents to a network along with many other people. It can also be useful to protect you from various forms of internet abuse, since it can't be spoofed or forged the way an e-mail address can.
PGP Homepages
Pretty Good Privacy, Inc. Homepage
The International PGP Homepage
More About PGP
DC Sage PGP Page
PGP on Usenet
comp.security.pgp
alt.security.pgp
comp.security.pgp.resourcesDownload PGP
From MIT's distribution site if you're in the US or Canada only
From the International PGP Homepage if you're not.Note: Due to US export laws, it is illegal to use the MIT version outside of the US or Canada. Due to patent laws, it is illegal to use the international version within the US. Since the two versions will easily encrypt and decrypt each other's documents, and can exchange keys, this is not a logistical problem. I suggest you use the appropriate version for your location.Related Issues
Anonymity and Privacy on the Internet
Frequently Asked Question Lists (FAQs)
Where to get the latest PGP (Pretty Good Privacy) FAQ ftp download
The comp.security.pgp FAQ
The Passphrase FAQ v1.04
-----BEGIN PGP PUBLIC KEY BLOCK----- Version: PGP 8.1 - not licensed for commercial use: www.pgp.com mQGiBEFGO78RBADMbMpuLjezniULGfNZgFhwdel9kI1FqcTnnfCPfH41bAiqHTpP xPb0qT2VjUpU13GcZpIOpc9x6bBmu8XzJdHG3UO3pEd76DkA02ncfGiTA6PnQbQ1 0Jdv6W7q0mkhvVUm0BXjiFCduble+QqCOmsmkiOeat4RL5SpOMlft2mOZQCg/1ll KRCvlAgkxRuWgpqmJpqpalMEAMlWxCrIvJJhyFT4V1pTDaW13ouKJP8YCHLDLLyk S8ZJRboKsV8Wdff8DTq0jHrqRYUdUGWVvBfwX8M+XKH/RlQu0MSNSwYsM+Yl8rr/ UWpSIGBbNmYjFqKnHRlN9LltK8D5W+MDFIoPOb9Hjwh71HAhGJopKSE8ugYyH4qo rJUaA/9iiEmrDiR2FjVxI3mV64c+gVvEdX10wVatLIXGB2yqdoLawzYOtlAOglNj 9ZHqv6V2s+9ij2xouiG6h2N/B8Yd/t1IkCSAucGhIWcp6nOk4KYPPbo7KKUAv5Pg ie5axPXmuffeaOIwkB7op/inLGh3l7j7DLGj60hbFalOUjHcVLQmTGlzZSBNZW5k ZWwgPG1lbmRlbGtyYW1lckBjb21jYXN0Lm5ldD6JAF0EEBECAB0FAkFGO78HCwkI BwMCCgIZAQUbAwAAAAUeAQAAAAAKCRB5e13sQACX1zWIAKDHdFyae71PSXXCPHCs il8tDLXtxACgz0mjN1O1+OyPgh2jcF4BkRJHXme5Ag0EQUY7vxAIAPZCV7cIfwgX cqK61qlC8wXo+VMROU+28W65Szgg2gGnVqMU6Y9AVfPQB8bLQ6mUrfdMZIZJ+AyD vWXpF9Sh01D49Vlf3HZSTz09jdvOmeFXklnN/biudE/F/Ha8g8VHMGHOfMlm/xX5 u/2RXscBqtNbno2gpXI61Brwv0YAWCvl9Ij9WE5J280gtJ3kkQc2azNsOA1FHQ98 iLMcfFstjvbzySPAQ/ClWxiNjrtVjLhdONM0/XwXV0OjHRhs3jMhLLUq/zzhsSlA GBGNfISnCnLWhsQDGcgHKXrKlQzZlp+r0ApQmwJG0wg9ZqRdQZ+cfL2JSyIZJrqr ol7DVekyCzsAAgIH/iqjR4HfVKrC/3xhyTV2G7RYD5UDW33GaNxmUXFrbakQlhGZ xMugUQ/3+G1ZY68wRA3f8URzh8z2aYuSZPWlqhBkzm8yE4adg6RTHyuuW47ui3fK X2RJVZZKwcMBHTuSvl5gXpH03gx2UZqYSvUvbAiMW99lgzFX5phy0qUc9nWvcAG4 y3svJ9kaEM//3q0Ep2jW1iiM29PgNnBXkE/Ks/lf87/4Fw1a6NOehKuAZD+YCRO9 IlCrhM60L2Ne1XUFONvHx2vQy6eARCIL2Q248FsXjn0aRYO3ypjfcuk8jCV+8h3x nzd/piwIkI1yjLpcmIIlEivGAicQvTynKU27BSWJAEwEGBECAAwFAkFGO78FGwwA AAAACgkQeXtd7EAAl9e94gCfbqYsCVmH6fnugUxRi0AtMXjAthEAoKkudx++lH5e VdMx2YwS7vLcT7tY =sNfN -----END PGP PUBLIC KEY BLOCK-----
1Boudewijn Visser, Dep. of Applied Physics,Delft University of Technology private correspondance
2M. Plumb private correspondance