ANSWER:
Search engine ranking is based on your page title, description metatag, keyword metatag, document text, alt tags for images, comment tags, and page text. The best information I have found on the subject comes from a web site by Bruce Clay(http://www.bruceclay.com/web_rank.htm).

This site also explains other topics for driving traffic to your site such as banner adds, reciprocal links, good design practices, etc. Bookmark the site and spend a few days reading through the site. The information is well worth it.