'Bowline' is properly pronounced bowl-in. It should rhyme with rollin', or you will be pegged as a landlubber by sailing folk.

How to tie a bowline:

First make a loop, and bring the running end of the line around under the loop:

            / /
           / /                          
          / /                            
         / /                             
     .------------.                           
    / ------------ \                           
   / / / /        | |                        
   | | | |        | |                      
   | | | |        | |
   | | |  --------  |                                                       
   | |  ------------                      
   | |          -
   | |         | |
   | |         | |
   | |         | |
   | ----------  |
    -------------

Then thread the end up through the loop and around the line:

        ----/ /
       / --/ /\                         
       | |/ /\ \                         
        -/ /  \ \                        
     .---------| |.                           
    / ---------| | \                           
   / / / /     | || |                        
   | | | |     | || |                      
   | | | |     | || |
   | | |  --------  |                                                       
   | |  ------------                      
   | |         | |
   | |         | |
   | |         | |
   | | A       | |
   | ----------  |
    -------------

(The larger loop around "A" is the loop that remains after the knot gets tightened, ie: the thing you are tying the rope to. Most often this is the leech of a sail, because a bowline becomes stronger under extreme tension, yet is relatively easy to untie)

Finally, bring the end back down through the loop:

        ----/ /
       / --/ /\                         
       | |/ /\ \                         
        \ \/  \ \                        
     .---\ \---| |.                           
    / ----\ \--| | \                           
   / / / / | | | || |                        
   | | | | | | | || |                      
   | | | | | | | || |
   | | |  --------  |                                                       
   | |  ------------                      
   | |     | | | |
   | |     | | | |
   | |     | | | |
   | |      -  | |
   | ----------  |
    -------------

Tighten from both ends, and you are done.

If the end is threaded the same way through the loop but around the line in the opposite direction (here right-to-left) this is called a Dutch bowline. Dutch sailors claim that it is stronger when tied this way, but this has never been demonstrated conclusively.