Fundamentally, the WordPress Theme system is a way to "skin" your
weblog. Yet, it is more than just a "skin." Skinning your
site implies that only the design is changed. WordPress
Themes can provide much more control over the look and
presentation of the material on your website.
A WordPress Theme is a collection of files that work together
to produce a graphical interface with an underlying unifying
design for a weblog. These files are called template
files. A theme modifies the way the site is displayed,
without modifying the underlying software. Themes may include
customized template files, image files (*.jpg, *.gif),
style sheets (*.css), custom Pages, as well as any necessary code files (*.php).
Themes are a whole new ball game. Let's say you write
a lot about cheese and gadgets. Through the innovative
use of the WordPress Loop and template files, you can customize
your Cheese category posts to look different from your
Gadgets category posts. With this powerful control over
what different pages and categories look like on your site,
you are limited only by your imagination.