MIDI filescontain instructions to access a sound library (typically General Midi) and playback multiple instruments with different combinations of pitches, volume, and length. You use sequencing or notation software to arrange a piece of music in a more visually appealing format and then when it is saved as a midi it appears as instructions like ~C160,72 (at least that's how you write it in Sibelius).
Links:
[href]www.midi.org[/href]
[href]www.students.sonoma.edu/users/w/walz/midiinfo.htm[/href]
[href]www.harmony-central.com/MIDI[/href]
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