Digital Web Magazine has published a nice intro article to web analytics: Dollars & Sense of Web Analytics:
Web analytics, whose origins date back to the invention of the Web, has worked its way from the domain of the technically minded to marketers, thanks in part to software with improved user interfaces and easy-to-understand reports. Despite these improvements, there is still a lack of understanding of the technical side of analytics. Web developers and marketing folks need to share the analytic tool, and each group has specific needs that can be fulfilled by the tool.
Check it out.