Compost is the ultimate life-sustaining, living soil made from a balance of the 4 elements- earth, air, fire (in the form of heat), and water. it is filled with beneficial microorganisms.
How to compost:
You can make compost by creating pile of discarded food (no meat), leaves and straw, letting it sit for a while, and turning it occasionally (twice a month is good) with a pitchfork so that air, some water, and the stuff on the outside of the pile can get into the center for awhile. The microorganisms that will naturally occur in the pile will help heat it up, and over time all of the stuff in the pile will break down into a perfect dark, nutrient rich soil that you can then feed back into the garden. (Note- in order to get the heat working, the pile must be at least 3x3x3 ft)
Many people are also making compost using worm bins. This is called Vermicomposting. Here is a great site with more information and a map of other Vermicomposters!