Apart from anecdotal evidence, of which there is plenty, there is a selection of research indicating the positive outcomes of homeopathic treatment.  In 2005 the published results of a 6 year study at the Bristol Homeopathic Hospital showed that of 23,000 patients followed up, 70% of them reported clinical improvement following homeopathic treatment, clearly demonstrating the effectiveness of homeopathy.

For more positive research, visit http://www.homeopathy-soh.org/whats-new/researchwn.aspx, or... why not try homeopathy and judge for yourself?

Remedies are drawn from the plant, animal, and mineral worlds.  Extracts from plants and animals, and triturations from minerals are taken, made into a tincture, then serially diluted in water and succussed (vigorously shaken), in a process that it is known as potentisation.  Experiments have shown that the more times a substance goes through this process, the more powerful it becomes.  The serial dilution also renders the substance non-toxic, and safe for all to use, including young babies, pregnant women and the elderly.

A few drops of the tincture are then usually added to sugar pills to create the Homeopathic remedy.

Why it should be that this process of preparing a homeopathic remedy should render the substance safe yet effective is not yet fully understood.  One theory is that the process of succussion leaves an energetic imprint of the medicinal substance on the body of water. 

Even in ultra-molecular dilutions information specific to the original dissolved substance remains and can be detected (1). This imprint is believed to stimulate a response in the body.  It is believed that the imprint acts on the flow of energy in the body rather than the physical processes.

1. What is Homeopathy? The Society of Homeopaths. [Online] [Cited: 9 February 2009.] http://www.homeopathy-soh.org/about-homeopathy/what-is-homeopathy/.