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Google Page Rank Checker
Google has an indexing tool known as GoogleBot. It's crawls the web reading all the pages it can, and is given access to. There are many reasons why GoogleBot won't index a page - some because it's well behaved, or because of problems with the website itself.
Those pages it can reach are given a Page Rank from 0 to 9, with a nominal best rank of 10.
Page Ranks are only updated a few times a year and are greatly anticipated by webmasters.
What does it measure
The "algorthm" for page rank is hidden but it's based on the quality of a site, it's age and, importantly, the pages that link to it, and that it links to. It's the inbound and outbound linking strategies that have seen a huge number of directories being created to supplement regular sites. GoogleBot is no fool, however, and prefers "natural linking" where someone has linked to a page because it fits with the content on the page. To learn more about linking and "search engine optimisation" check out the Simple SEO Blog.
Why does it matter
It doesn't really, but webmasters use it as a measure of the success of their efforts. Given the multitude of search terms that a site may be chasing PR becomes a de facto standard for the site as a whole.
Search Engine Results (SERPs) matter much more - where for the search terms a page actually ranks. Page 1 is best, but for competitive terms it may not even be worth chasing - you may be better getting in the back door with a less popular but equally valid term.