After having 2 sessions of acupuncture. I noticing an improvement in my illness after trying many other things that didn't work (doctor was even considering anti-depressants).

First of all, the needles are not big and ugly. They are very thin (much thinner than a syringe). And don't hurt that much at all (although it can feel weird at times).

It has been practiced by the Chinese for about 3000 years. The theory is that energy flows though the body. When there is a disruption, you can become ill (in my case this was Irritable Bowel Syndrome).
When the needles are inserted in specific places. They stimulate certain organs. And help the become healthy again.

It may seem unbelievable that such a simple thing as poking needles in the right place can solve an illness. But there is plenty of scientific, western-world evidence to back it up.

That's it in a very small nutshell. Plenty of details here: http://directory.google.com/Top/Health/Alternative/Acupuncture_and_Chinese_Medicine/