High dynamic rangeThe above image was made from 3 different images at 2 EV spacing. One was 2 stops underexposed, one 2 stops over and one in the middle. Each image has it's own dynamic range of brightness values that it can cover. To make the HDR image these three overalapping ranges are combined to create an image that covers all of them at once. Hence the sunset AND the town can be properly exposed simultaneously.
Another way to do it is just take an over-exposed
RAW image, back the exposure off in photoshop and increase the gamma (midrange brightness) with fill light. RAW images have more color and dynamic range information then can actually be displayed on the screen. This technique just displays more of it then usual. This doesn't cover as large of a dynamic range as the previous technique, but I think it looks better. What do you think?

(edited on monday to include more info and another images)