The science behind the magic.
http://en.wikipedia.org/wiki/Coffee_percolatorAfter the percolator is placed on the heat source (such as a range or stove), the temperature rises until the water in the bottom chamber boils. While some models may have a one-way valve at the bottom of the tube which forces some of the boiling water up the tube, most operate on the simple principle that the rising bubbles will force the liquid up the tube. The hot water is distributed at the top over the perforated lid of the coffee chamber. This water then seeps through the coffee grounds and leaves the coffee chamber through the bottom, dropping back into the lower half of the pot. The rest of the colder water at the bottom is meanwhile also forced up the tube, causing this whole cycle to repeat continually.
As the brew continually seeps through the grounds, the overall temperature of the liquid approaches boiling point, at which stage the "perking" action (the characteristic spurting sound the pot makes) stops, and the coffee is ready for drinking. In a manual percolator it is important to remove or reduce the heat at this point (keeping in mind the adage "Coffee boiled is coffee spoiled"). Brewed coffee left on high heat for too long will acquire a bitter taste.