Block Formatting Contexts
Floats, absolutely positioned
elements, block containers (such as
inline-blocks, table-cells, and
table-captions) that are not block
boxes, and block boxes with 'overflow'
other than 'visible' (except when that
value has been propagated to the
viewport) establish new block formatting contexts for their contents.
With my bold, it's the establish bit that is important
What this means is that the element you use overflow
(anything other than visible) or float
or inline-block
..etc on becomes responsible for the layout of its child elements. It's the child elements which are then "contained", whether that's floats or collapsing margins they should be wholly contained by their bounding parent.
In a block formatting context, each
box's left outer edge touches the left
edge of the containing block (for
right-to-left formatting, right edges
touch)
What the above line means:
Because a box can only be rectangular and not irregular shaped this means a new block formatting context between two floats (or even beside one) will not wrap around neighbouring side floats. The inner, child boxes can only extend as far as to touch their parents left (or right in RTL) edge. It's this behaviour that's useful for columnar style layouts. The main use of it however is to stop floats, say in a "main content" div, actually clearing floated side columns, i.e. floats that appear earlier in the source code.
Float Clearance
In normal circumstances floats are supposed to clear all previous floated elements, that's previously floated in the whole source code, not just your displayed "column"
The telling quote from the "float clearance specs" is:
This property indicates which sides of
an element's box(es) may not be
adjacent to an earlier floating box.
The 'clear' property does not consider
floats inside the element itself or in other block formatting contexts
So say you have a three column layout where the left and right columns are floated left and right respectively, the side columns are now in new Block Formatting Contexts, because they are floated (remember float is also one of the properties that establish a new BFC), so you can happily float list elements inside them and they only clear floats which are already inside the side columns they no longer care about floats previously in the source code
To make the main content a new Block Formatting Context or not?
Now that middle column, you can simply margin it from both sides so that it appears to sit neatly between the two side floated columns and take the remaining width, a common way to get desired width if the centre column is "fluid" - which will be fine until you need to use floats/clearance inside your content div (a common occurrence for those using "clearfix" hacks or templates including them)
Take this very simple code:
#left-col {
border: 1px solid #000;
width: 180px;
float: left;
}
#right-col {
border: 1px solid #000;
width: 180px;
float: right;
height: 200px;
}
#content {
background: #eee;
margin: 0 200px;
}
.floated {
float: right;
width: 180px;
height: 100px;
background: #dad;
}
<div id="left-col">left column</div>
<div id="right-col">right column</div>
<div id="content">
<h3>Main Content</h3>
<p>Lorem ipsum etc..</p>
<div class="floated">this a floated box</div>
<div class="floated">this a floated box</div>
</div>