Hey man. A sluice is designed to work with a flow of water running through it. Basically the heavy minerals like gold, lead, silver, iron etc, will settle to the bottom while the lighter materials like sand and light gravel will be carried off by the water. Sluices are easy to make and can move a lot more material then panning alone.
The sluice consists of (usually) a V shaped flare to help bring in more water, an inspection mat (usually black rubber v matting) to see if your getting any gold, riffles behind which the gold will settle out, and some kind of carpeting (or miners moss) under the riffles to hold the fine gold.
You can use a sluice out of water with a recirculating water setup called a highbanker.
To setup a sluice you need about 1 inch of drop for every 12 inches of sluice length you have, so if your sluice is 3 feet long, you need about 3 inches of drop from the front of the sluice to the back.
To make one, you only need some lumber, or aluminum if you want to keep it nice and light weight.
To work one, you basically shovel in some gravel from the river slowly, letting the water wash it away. Dont feed the gravel in too fast or the gold will be washed out. If you cant see your riffles when your putting material in, your going to fast. Another good rule of thumb is it should take between 14-20 seconds for the material to clear from one end of your sluice to the other (depending on how long it is). Also you should classify your material down to whatever size riffles you have or below. So if you have 1/2 inch riffles you want 1/2 inch or less gravel running through it. Personally, I classify down to 1/8 of an inch regardless, just because there isn't much gold bigger then that where I run my sluices.
In a sec I will post some links to sluices I made, soon as I find the threads. (Edit: here's the links to some sluices I made)
http://forum.treasurenet.com/index.php/topic,265020.0.html
http://forum.treasurenet.com/index.php/topic,310884.0.html
(edit) Here's video of me running a sluice on the creek at thermal city (It was a bad spot but I was just testing how the sluice did that run)