Ok, well imagine an interface between two different media 1 and 2. These will have a different electrical permittivity \epsilon_1 and \epsilon_2. Now when these two media are dielectrics they will be polarized by an electric field: there will be a dipole moment induced (crudely said a shift of the electron cloud around the nucleus). If these induced dipole moments are inhomogeneuous the result will be a net volumecharge in the dielectric. This is called a 'bound charge'. As a consequence there will be an additional electric field from the dipoles aside the externally applied field.
You will have to take into account this bound charge in Gauss's law (
http://en.wikipedia.org/wiki/Gauss's_law). If you would like to use some sort of Gauss's law for only the 'free charge', this is the charge not resulting from the induced dipoles you will have to use a different quantity than the electric field in the Gauss integral. This quantity is called the 'electric displacement', and often you will encounter Guass' law with the electric displacement instead of the electric field.
If there is no charge present the perpendicular component of the electric displacement will have to be the same under and above the interface because of Gauss's law. As the electric displacement is not the same as the electric field this means this does not mean the perpendicular component of the electric field will have to be continuous across the boundry! In the case of linear dielectrics (the polarisation is linear in the applied electric field) there is a simple relation between the electric displacement and the electric field:
\vec{D}=\epsilon \vec{E}
So the condition that the perpendicular component of the electric displacement will have to be the same under and above the interface (from the modification of Gauss's law):
D^{perp.}_{1}-D^{perp.}_{2}=0
yields \epsilon_1 E^{perp.}_{1}=\epsilon_2 E^{perp.}_{2}
Notice that the argument (following from a vanishing curl of the electric field)for the parallel component of the electric field still stands.
Note also that this is all in the absence of a surface charge. If there would be a surface charge present it would follow from Gauss's law (or Coulombs law if you like) that perpendicular component of the electric field is not continuous but differs on both sides.
This is a far too short explanation. I hope this clarifies things but I think it has only raised some more questions, so I advise you to read a book on it, maybe do a course on electrostatics