Before describing how we use the CMB to measure cosmological parameters, let me step back and talk about one of our powerful cosmological tools: the power spectrum.
Normally, when we're describing objects, we describe them as some set of three-dimensional spatial coordinates. For example, if I wanted to describe a ball, I would specify the position of its center in space and then say that it constituted the sum of all points (or "delta functions") within a radius "R" of the center. Since the ball is really simply described in this coordinate system, it turns out this is a nice way of representing it. What about something else; say, a sound wave? Would I want to represent that as a sum of points? Probably not. Instead, we would usually think of it as a sum of sine waves, each with different phase and amplitude. Obviously, it's much simpler to say that a sound is composed of, for example, a combination of 400 Hz and 200 Hz sine waves than it is to describe the position of all of the particles in the wave as a function of time.
So what about the ball? Can I also represent this as a set of sine waves? Yes, it turns out that, as a consequence of Fourier's theorem, I can describe any function as a combination of sines and cosines. The theorem is generally applied to things that vary as a function of time (like sound waves), but it works just as well on things that only "wave" in space. This is not a good description of the ball, however (try thinking about how you might combine sines and cosines to describe it's shape -- it's not simple), so we were better off with the set of points.
But what if we were to make small modification to the ball that would make it more realistic. That is, let's say that the ball does not have a smooth surface, but is instead "rough", either by the intrinsic structure of the solid or by wearing with use. Many of these imperfections are very small and there are quite a large number of them, so it would take a lot of points to describe them well. What about our combination of sine waves? Can that do any better? Since the imperfections are not evenly periodic (there's clearly a lot of randomness involved), it's not obvious that this description would be any simpler. However, Fourier space provides us with a nice function, known as the power spectrum, that describes how prominent the imperfections are on a given scale.
To make this more concrete, let's try to see if we can reason out where we might find "peaks" in the power spectrum of, say, a beach. For simplicity, let's only stick with variations that we can see. What's the smallest variation? That's likely to be about the size of a grain of sand. Thus, we expect a peak in the power spectrum at around a millimeter. On what other scales is the beach "wavey"? Well, there will likely be pebbles and rocks interspersed with the sand (washed up by the waves), so we might also expect the power spectrum to rise on ~10 cm scales. There's a lot less fluctuation on this scale, however, so we wouldn't expect it to rise as much as on sand grain scales. Finally, what about on scales comparable to the size of the beach itself? In my experience, one will often find that the sand is somewhat wavey on these scales, implying that some mechanism is adding extra power at the longest wavelengths. I don't know exactly what it is, but it may have something to do with the wavelengths in the water hitting the beach or the collective weight of beach goers.
Hopefully you get the basic idea. The reason I'm talking about all this is that it's very common in cosmology to talk about the universe in terms of its power spectrum. We want to know how it fluctuates on a given scale and why. You can calculate power spectra for galaxy distributions, gas distributions, and even the CMB. The CMB is a bit different, however, because it's only a power spectrum in two dimensions (angular position) and on a spherical surface (the entire sky). Thus, rather than talking about wavelengths or wave vectors, we represent the power spectrum in terms of spherical harmonics (low l -> long wavelength, high l -> short wavelength). Here's a sample of recent data on the CMB power spectrum:
http://kicp.uchicago.edu/~davemilr/ISW/wmap_p_spec.JPG
Unfortunately, I think I might need yet another post if I'm going to explain the significance of this, so bear with me...
