Im going to give you the short answer.
Tuning means changing the original values (settings) in the cars computer. The computer (ECU) controls all the vital operations of the engine. Things like valve timing, fuel injection, etc. By tuning it, you make these settings more aggressive, producing more power.
This can be done in several different ways, the most popular one is called a "reflash". All a reflash is, is using a tuning program to change and save the values. Tuning is not something I would recommend doing on your own because you can easily change the settings enough to blow up the motor. This is usually done by a tuner, which is someone who is an expert at maximizing the settings for your car without making it risky.
Ask in your local forum for good places for tuning around you...
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