There's two basic, related definitions of entropy. I'm probably about to post a related question myself, so I'm no expert, but I hope you find the following helpful.
The term was first used in the field of classical thermodynamics. Quick summary:
A system doesn't possesses "work" or "heat"- these are labels that we assign to different methods of transferring energy into or out of a system. This means that if some body undergoes a cyclic process, so that at the end of the process it's in exactly the same state it started out from, then you can add up all the heat that's transferred into and out from it and not get zero; any net energy that flowed into the system as heat might be spent doing work, leaving the body with the same total energy at the end. Mathematically speaking, the integral of the increments dQ around a closed loop is non-zero. However, it turns out the integral \oint\frac{dQ}{T}=0 identically, where T is the temperature of the body at which the heat is transferred. This means that we can define a total differential dS=\frac{dQ}{T} of some quantity S, called the entropy, which is a function of the state of a system; in plain English, a system "has" a definite value of this 'entropy' the same way it has a definite energy.
I never really understood entropy in a purely thermodynamic context, and still don't. It makes more sense (to me, at least) from the viewpoint of statistical mechanics.
To a first approximation, it's helpful to start out with the idea that diazona posted below: the entropy is the logarithm of the number of "states" of the system, by which we mean "microstates". What you mean by this precisely depends on whether or not you're talking about classical or quantum mechanics. Classically, a system is specified by a point in phase space (if you've encountered the concept?); and quantum mechanically, by a specification of the components of the state vector with respect to some basis (or, at a simpler level, by a wavefunction). So you fix the energy of your system, and see how many ways you can configure the constituents of that system so that in total it has that energy.
At this simple level, however, it doesn't make any sense for a system to "maximise its entropy"- the paragraph above counts the total number of ways it's physically possible to share out the a given amount of energy among the components of a system; that's a fixed number. Instead, we have to think about the distinction between a "microstate"- a complete specification of the system- and a "macrostate"- a specification of all the numbers like temperature, pressure, volume etc. that we can actually measure.
To understand the relation between the two, think about a sequence of 100 coin tosses. A complete specification of the sequence would consist of the entire sequence of heads and tails; a "macrostate" would consist of saying how many were heads and how many tails. If you actually sat and tossed a coin 100 times, the odds are slim that you'd get 100 heads, even though this sequence is no less likely than any given sequence HTHTHTTH...HT that contains 50 heads. The odds are extremely high, in fact, that you'd get 50 heads, plus or minus a couple, simply because there's more of those sequences. The essential point is that you're picking out the macrostate by looking for that which corresponds to the greatest number of microstates. The number of microstates corresponding to that macrostate is what diazona called the multiplicity, the number \Omega of which the logarithm is the entropy.
Finally, it's worthwhile commenting on why we take the logarithm. It means that if we have two systems, with multiplicities \Omega_1 and \Omega_2, then the multiplicity of the combined system is \Omega_1\cdot \Omega_2, so that the total entropy is the sum of the entropies of the two systems.
Sorry for the lengthy post, but I hope it helped!