Gladly...and I'll try to keep it short and sweet.
All it is is something that goes inside your bag and holds in the moist air which comes off your body as you sweat (It can be as simple as an oversized garbage bag or a specialized $70 sil-nylon model). It basically shuts down 'insensible perspiration' (the moisture which evaporates from INSIDE your skin, cooling you). If I'm not mistaken this happens because the air around your skin is so fully saturated with moisture, the water in your skin can't evaporate. The bad side is that the 'sensible' perspiration is increased because it won't evaporate either and that can give you a sweaty, clammy night if your gear is TOO warm.
My theory behind why the AMK thermo-lite bivy does so well is because it also reflects radiant heat.
In winter there are additional benefits (which is good because you generally wouldn't use a vapor barrier in the summer anyhow). The moist air doesn't get get into your sleeping bag. when the moist air in the bag hits the cold air outside your bag it freezes. That means a stiff heavy bag with next to no working insulation.
If you want to learn more there's information on the net in spades. One of my favorite explanations can be found here:
http://www.netbackpacking.com/vapor-barrier-and-radiant-barrier-liners.html