"A butterfly flapping it's wings in the amazon will create tornadoes in America."
An oversimplification. It is NOT suggesting the the air movement of the butterfy's wings is magnified NO! All it does is change one tiny mass of air. That tiny mass of air makes a dewdrop fall. The dewdrop wets the ground, the ground warms the air, the air rises a tiny bit, a wind is diverted, a cloud forms elsewhere, the ground warms more air, etc. etc.
All these things happen normally anyway, but if one doesn't happen, the others happen differently, and the cumulative effect is multiplied.
The upshot is that if you can't model every position and movement of every molecule of air over the last weeks and then extrapolate what the weather will be like; you're pretty much going to fail. Even the slightest initial conditions have a dramatic effect.
Here's a more intuitive example:
Try balancing a pencil on its tip. Try really hard. It will fall over. But it will not fall in the same direction each time, it will fall in all sorts of directions no matter how carefully you initially balance it. One time it will fall south, the next time, even though you spent five minutes trying to balance it exactly the same, it will fall north.
The final outcome of your pencil is extremely sensitive to the initial conditions, and the final result can be dramatically different. You simply cannot be so precise about the initial condiions so as to expect the same result to be generated each time.
(Caveat: This is not really an example of chaotic behaviour, it is merely a demonstration of one of the theory's core principles - an outcome that can be extremely sensitive on initial conditions.)