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The Semantic Web is an extension of the current Web that will allow you to find, share, and combine information more easily.
Information is represented in a manner that is unambiguous and amenable to machine processing, better enabling computers and people to work in cooperation.
or, another way to think about it...
The Semantic Web is a mesh of information linked up in such a way as to be easily processable by machines, on a global scale.
You can think of it as being an efficient way of representing data on the World Wide Web, or as a globally linked database.
More information on how W3C is helping build this is availiable on the Semantic Web Home Page
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