Buffers are areas of RAM reserved by your music software to hold the digital data that corresponds to the sounds you're recording or playing back.
When recording. an A/D converter converts the analogue signal into binary 0's & 1's. These are held in the buffers and periodically transferred to your disk drive. The buffers are then flushed to be reused.
Likewise when playing back, the software will 'read ahead' from the disk to keep the buffers filled so the music can be played back smoothly without waiting for data to be read from the disk.
When deciding how many buffers to allocate, and how big they should be, there ara a couple of considerations. Allocating lots of buffers should ensure smooth, noise-free recording and playback, but will increase latency. Latency refers to the time taken for you to hear a change in volume or panning etc. when you adjust a control in the software. Allocating fewer buffers reduces latency, but they need to be flushed and refilled more frequently, and if your hard drive is unable to keep up with the increased activity you will hear this as stuttering or clicks on playback