Could someone explain what this means?
Len Sassaman was a very prominent member of the cypherpunk community who recently passed away.
The blockchain is the record of all transactions that the bitcoin network has processed. The blockchain is how bitcoin clients know who sent how many bitcoins and to whom.
Edit: corrected for improper terminology. I understand now.
Dan Kaminsky figured out a way to embed ascii text into the block chain. I did not try to find out how he did it, but he probably created some transactions that include those strings. If you want to find out more about how he did it, he will give a talk at the Chaois Communications Camp related to Bitcoin.