Blimey! where do you start, others will have better more concise answers I know.
VBA, is Visual Basic for Applications, it's a programming language that allows people to Automate Tasks/Make things happen on opening/closing/changing The spreadsheet (the list is endless).
A UDF is one such thing that can be writen in the VBA part of the application. It stands for User Defined Function.
Basically, when you use Excel there will a time when it's just not possible to use the predefined Functions to get the result you what, these being SUM(), COUNT(), VLOOKUP() the list goes on.
All I can suggest is you search this sight and other for VBA and UDF if you want explore a whole new world of possiblities.
That's all I can put towards this, I'm not hot on VBA.
I noticed that you registered yesterday, believe me when I say, the people on this sight will take you a long way if that's where you want to go.
Stick around a while, ENJOY the show