Geocaching is a world wide game, where you got to a specific GPS position. There you normally find something like a log or even a box with trading items in it. Sometimes there are Geocoins that travel the world, and Travel Bugs that tag a item to travel around the globe.
At the moment I don't have a GPS device. You can't just use your car navigation. They are normally way to unprecise or don't even have a function to read the gps coordinate. You need an Outdoor device. But when the cache is in a town, or on a easy to find site, you might have chances to find the cache even without a device.
However, it's so much fun to find it. And you can make your own cache, by hiding one, at a nice and remarkable place. It's addicting. There are whole stores which sell Geocaching stuff, like capsules and logbooks.
I will get a "Garmin Legend HCx" soon, and then no cache will be safe from me :).
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