From Wikipedia on 11/4/12
Perception (from the Latin perceptio, percipio) is the organization, identification and interpretation of sensory information in order to represent and understand the environment. All perception involves signals in the nervous system, which in turn result from physical stimulation of the sense organs. For example, vision involves light striking the retinas of the eyes, smell is mediated by odor molecules and hearing involves pressure waves. Perception is not the passive receipt of these signals, but can be shaped by learning, memory and expectation. Perception involves these “top-down” effects as well as the “bottom-up” process of processing sensory input. The “bottom-up” processing is basically low-level information that’s used to build up higher-level information (i.e. – shapes for object recognition). The “top-down” processing refers to a person’s concept and expectations (knowledge) that influence perception. Perception depends on complex functions of the nervous system, but subjectively seems mostly effortless because this processing happens outside conscious awareness.