Basic - Its were you get several exposures and put them together, one under exposed and one over, plus correct exposed one.
EDIT: Stop being first! ^^![]()

How to Damage a Reasonable photo
Shoot in rawHow to make a Damaged photoReasonable
Take it you dont like HDR then?
Shoot in raw![]()
Take it you dont like HDR then?
Most people don't like it as it tends to look fake, if it's done right though it can look good.
I know why people don't like it, but when has something fake look odd in a photo, anything done in photo shop is fake. You cant make a rubbish photo to good with HDR but its makes a good photo to amazing with HDR. Like the picture you have said was a rubbish HDR, its a guy sleeping nothing good about it, where as the one you said good is a decent image to start with.
I think I have ever seen about 2 photos that have benefited from HDR. All others look weird, fake, oversaturated or would look better from good understanding of exposure or use of other exposure blending techniques. Personally if you take a good photo and use HDR, it does't make it amazing, it ruins it. Each to their own though.

Personally if you take a good photo and use HDR, it does't make it amazing, it ruins it.
Is this, to some degree, the same as using ND graduated and/or polarizing filters?
No, not really. Well, maybe a little bit...It's more a case of blending 3 or 5 or 7 etc exposures completely and then allowing the software to bring the detail out where it is needed to create the image.
Its when you take multiple exposures of the same shot over a range of fstops and blend them together to create a picture that has a full range in the shadows, midtones and the highlights. Mostly it looks unnatural but sometimes can look amazing if done well.
have a look on flickr at the HDR groups