Here it is, on one image:

There are many approaches on how long an Iteration should be, suggested lengths are 2-4 weeks but it may be modified if it suits your team and your project well. Iteration length can be flexible but it's not recommended as it takes all the healthy pressure away. You'd say: 'Oh, there's no need for hurry, I just need to finish this task but there's no deadline for it, I just need to do it.'
Thanks to iterations your client sees his product being constructed just like you would see your house getting done in opposite to ordering flask of perfumes from some internet shop. Believe me, even if client gave you the most detailed specification you've ever seen his vision mismatches yours.
This is only an top of iceberg introduction to agile if you want some more go and see:
agilemanifesto.org
http://en.wikipedia.org/wiki/Agile_software_development
..and you'll probably get going from there.
If I have some time I will post some more on scrum which is part of agile, I will also give you some more description of benefits that programmers get of it.
Cheers!
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