Ok. Here is how a system boots.
1. power supply powers up. The voltages aren't necessarily good, so the "power good" line on the ATX connector is not set. The motherboard keeps the CPU in the "reset" state... it doesn't execute instructions yet.
2. the power supply voltages stabilize (happens quickly), power good is set to "good". motherboard releases CPU from reset state
3. CPU jumps to location FFFF:FFF0, which the chipset has mapped to the last 16 bytes of the ROM BIOS. this is a jump instruction pointing to the rest of the code.
4. the CPU does a bunch of stuff to initialize ram, pci, agp, video, drives, etc (the main POST). all the instructions for this are located in the BIOS.
5. one of the last things the CPU does (still from the BIOS) is look at floppies, CDs, hard drives, (and network cards) for bootable device. lets say no floppy/cd. it finds the drive, and the CPU reads the MBR into memory and then jumps to that code.
6. at this point, the control is with the operating system.
all that ^^^ taken from
here (the initial instruction location is different... i used the location "Peter" told me rather than what the site says... if you read that page, it says last 16 bytes, which is ffff:fff0, not ffff:0000, so they probably made a typo)