Nvidia SLI and ATI CrossFire is basically a solution for using multiple graphics card on a single PC with a single motherboard .
Nvidia Scalable Link Interface
Scalable Link Interface (SLI) is a brand name for a multi-GPU solution developed by Nvidia for linking two or more video cards(Nvidia cards) together to produce a single output. SLI is an application of parallel processing for computer graphics, meant to increase the processing power available for graphics.
-Courtesy WikipediaATI CrossFire
It is a similar technology used to connect multiple ATI Graphic cards and produce a single output .Rivaling the SLI Technology .
For such a set up using SLI you need
-->An Sli enabled Motherboard (Preferably from Nvidia)
-->2 Similar Nvidia Graphic cards
-->SLI bridges
The SLI Bridge essentially serves as a connection between the 2 cards .
The 2 Cards are in a master slave relationship . That is if a 3d scene is given to the 2 cards to render .
One card (Master) renders the upper scene . while the slave card renders the lower scene and passes this to the master card through the SLI Bridge .The master card then connects the 2 halfs and renders it finally to the monitor .
NOTE : Note : It is Better to buy a new single card than sli 2 cards imo..... Contrary to popular belief 2 sli ed cards give you a performance boost of any where from 60% to 90% depending on your card** not a 100% boost as it should be .So Even though you pay twice the price for the 2 cards you dont get twice the performance!
**According to Nvidia's statement
Most Recent Technology
NVIDIA 's Quad SLI
As the name suggests 4 Nvidia Graphic cards can be connected together to produce a single output
ATI's CrossFire X
A Similar technology allowing 4 ATI Graphic cards to be connected together to produce single output .
The setup, according to internal testing by AMD, will bring at least 3.2x performance increase in several games and applications which required massive graphics capabilities of the computer system, the setup is targeted to the enthusiast market
-Courtesy Wikipedia



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