how long have you got....
in short it's a parasite that lives in the gravel. it has various stages of life, one where it's dormant in the gravel, one where it's free swimming in the water and another where it's attached to the skin of your fish.
there is a continious debate going on in the fishkeeping world as to wether or not it is always present in the aquarium.
the problems start when your fish is stressed. as soon as you move a fish, change the tank about, let the temp drop or any other kind of stress your fishes immune system is weakened. at this point the fish are vulnerable to attack from the parasite. the signs look like someone has dumped a load of table salt on your fish. white spots everywhere.
while the parasite is attached to the fish (while you can see spots) it is feeding on the fish (eating it alive, sorry), in this stage meds will not kill it (although you should begin treatment ASAP). after 3/4 days the parasite drops from the fish and enters the free swimming stage, looking for another host fish to attach to. at this point the medications will be able to kill the parasite. fail to medicate and the parasite will either find another host fish or return to the dormant stage and go back to the gravel. (this is the reason people say it's always in the aquarium, once you have it you can never be totally rid of it.)
however if your water parameters are good and you have healthy fish the parasite will not be able to attach to the fish hence you wont see the signs of infection.
hope that makes sence and goes some way to explaining things.
for a more complex explination type "whitespot" into google
note: in case you dont know white spot is also called "ich" as the fish seem to ich /scratch themselves against gravel, wood etc when infected.