It deals with the size of the sensor incorporated into the camera system. Most DSLR's have a sensor that is physically smaller than the standard 35mm film frame. Since the sensor is smaller there is a magnification factor usually about 1.5 to 1.6, however is some PS cameras it can even be more than this. There are quite a few 'professional' DSLR's that have this 'crop' factor, as far as I'm aware there are only a handful of full chip sensors out there. basically what this does is increase the focal length of any given lens used (there are some other issues, too detailed to get into here), let's say you're using a 100mm lens on a camera with a crop factor of 1.5, the realized focal length would be 150mm (100mm x 1.5).