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Dan,
It's used when you don't want something to change. Suppose in cell C1 you
have a formula of =A1*B1. If you wanted to multiply every number in Col A by
B1 and tried to copy the formula down it wouldn't work because the formula
would change to =A2*B2 for C2 and A3*B3 for cell C3. If you use =A1*$B$1 it
would copy down as A1*$B$1 yet.
It's used when you don't want something to change. Suppose in cell C1 you
have a formula of =A1*B1. If you wanted to multiply every number in Col A by
B1 and tried to copy the formula down it wouldn't work because the formula
would change to =A2*B2 for C2 and A3*B3 for cell C3. If you use =A1*$B$1 it
would copy down as A1*$B$1 yet.