Here's a brief extract from one of my tutorials.
Polarisers are used to reduce or remove reflections.
Many people wrongly believe that they work only with shiny surfaces, but in fact they work with the sky too, this helps to remove internal reflections and so increases the blue saturation of the sky.
They do not work at all with unpainted metal, and for maximum effect the lens axis should be between 30-40° to the reflecting surface. Polarisers are more effective with telephoto lenses than standard lenses, and when used with wideangle lenses the polarising effect can be very uneven.
They need to be rotated in their mounts until, looking through your SLR viewfinder, the reflections are at their minimum. If you are using a non-SLR camera just look through the filter with your eye, rotate it for maximum effect and then fit it to your camera in exactly the same relative position. The result may not be perfect but it will be fairly close.
Polarisers are available in two distinct types, circular and linear. This refers to their characteristics, not their shape! Circular polarisers are the same as linear, except that they also have a quarter-wave plate added, which increases the cost.
The results produced by the two types are similar but not identical, and there is no point in paying the extra for a circular polariser unless you need one. You need to buy a circular polariser if your camera uses a semi-silvered mirror in either the metering or autofocus system, so you'll need a circular type with nearly all SLR cameras