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Machine Readable Passports
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No best answer has yet been selected by swills9. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.They'll just swipe it through like a bar code on a tin of beans at the supermarket, but although a bar code on a tin of beans gives the cashier the exact price, a machine readable passport gives American immigration the exact details of the biometric page on your passport and subsequent U.S. entry and exit dates.
You are jumping the gun here. The UK doesn't have proper biometric passports yet - they are being introduced this year.
The machine readable bit is the <<<< and letters part at the bottom of the page with your photo.
They scan this in and it captures your data (country, name - you can read it all, nothing fancy) both more quickly and more accurately than typing it in. They can also see if you are on any WANTED list.
http://www.ukpa.gov.uk/general_biometrics.asp
has details of what is going to happen. The photograph is already a crude biometric - more details will go on a chip.