NAVIGATING THROUGH THE COMMAND PROMPT

Like the Windows graphical environment you are used to, the command prompt uses drives and directories (folders) to organize data. Each logical drive (C:\, D:\, etc.) has it's own entry here, and contains its own set of directories and files.

The command prompt window will place you at'C:\>' by default, meaning you are looking at the logical 'C:\' drive, generally the first hard disk on your computer and the one on which Windows is installed.

As an experiment, go to 'my computer' and open your c: drive in a window. Now at the command prompt, type 'DIR'.



As you can see, the contents of both windows are the same, though the order will be slightly different since Explorer puts folders before files, while the directory (DIR) command simply lists all contents alphabetically.

The 'DIR' command lists the contents of the folder or drive you are currently at in the command prompt. To get a more useful listing of the files and folders in your current directory, use the 'DIR /d' or 'DIR /p' switches. The former displays the list in three columns, fitting more info on a single screen, while the latter pauses at the end of each screen of information, waiting for you to press a key before it continues scrolling. Note how the contents of the 'DIR' command are the same files shown in the Explorer window on your desktop.



Source:
http://www.pcstats.com/articleview.cfm?articleid=1723&page=2