Solah,
When an unswitched hub receives a frame of data, it simply repeats it out all of its ports. So if a frame comes in on port 1 and the other computer/node is on port 3, the frame will go out on port 2, 3, 4, 5, etc... And the way Ethernet works with CSMA/CD, two nodes can't trasmit at the same time. If they do, a collision occurs and they have to stop, wait, and retransmit the data. So no other nodes connected to a hub can trasmit if another is transmitting. If you have 4 computers attached to a hub, those 4 computers are "sharing" the total bandwidth.
With a switched hub (aka switch) receives a frame of data, it looks at the physical address and "switches" the frame to the port it knows that address is on. So if a node on port 1 wants to send to a node on port 3, and a node on port 2 wants to send to a node on port 4, they can both transmit at the same time. It cuts down on collisions (I'm not sure as if there should even BE collisions using switched segments), and each transmission will get the total bandwidth...
I dunno if that was a good explanation or not :-/ Just remember that a hub repeats out all ports and a switch takes it up a layer and looks at an address. It then switches the frame according to an address table its built that tells which port a node is connected to. Cheers!
Oh yeah, as far as stacking hubs and switches... Each hub/switch should have at least one port that is uncrossable? I'm not sure on the exact term there. But anyway, you can connect a regular Cat5 cable do the uncrossed port on one of the devices and then to any other port on the other device. If you don't know/have an uncrossed port, you can make or buy a "Crossover" cable. Which does the crossing internally (in the wire). You can then connect that wire to any of the ports on either device. This cable won't work connecting it from the hub/switch to a computer though... Anyway, hope that answers your question, although maybe I just made it more confusing
