look...you, as an intruder, sit and sniff what is going on outside the network...some of the stuff floating around in the air will be the mac addresses of the machines involved.
you then take the mac address you found floating around, do like i said in my post above and voila, you are now part of that network, and authorised (assuming extra layers, like wep, wpa are taken care of)
no, it isnt secure, neither are locks on doors, but we use it in lieu of anything else.
use wpa-psk and add mac filtering if you are that concerned