I'm going to throw my explanation into the ring
Bump Mapping is a technique used to give a 2d image a 3d effect via the manipulation of the light source.
Polygons, Textures and BumpMapping.
HW's soldiers, horses, equipment, buildings are 3d models made up of hundreds of
Polygons.
Every flat surface on that model is made of at least 2 Polygons.
The more Polygons on the model the more computing power needed to display it on the screen.
If the 3d model includes many small details like buttons, straps, ears, nose, windows, doors, etc...
it will have thousands of polygons, per each 3d model, for the CPU/GPU to process.
A game programmer and artist try to get the best looking game for the least amount of CPU/GPU usage.
They try to use the minimal amount of Polygons on the 3d models as possible.
A
Texture is the uniform or "paint" on a 3d model. It is a graphic file that the game engine drapes over the 3d model.
A Texture is flat (2d) and has no 3d elements. The artist can use visual tricks with highlights and shading to give the Texture a faux 3d effect.
(look at the buttons on your OS or internet browser, there are many examples of using shading and highlights to make a 3d effect)
A
Bump Map is a method used by artists to create a 3d effect using 2d Textures.
An exact duplicate of the Texture is adjusted so that the color is removed, the "light source" in the image is adjusted so that the shadows and highlights remaining give the image an "embossed" effect. The high points appear raised above the surface of the image. (like the numbers on a credit card)
If this "embossed" Bump Map is place under the flat Texture, it gives the Texture a subtle 3d effect.
Place a credit card under a flat sheet of paper and rub on the paper, you will get a 3d "embossed" effect on the paper.
Bump Mapping is a "cheap" way to get a 3d effect on a Texture (3d model) without actually using more polygons in the 3d model itself.
The artist can get those small details on the 3d Model without increasing CPU/GPU load.
The downside to using the BumpMapping option in HW is that the game loads a second Texture file for everymodel.
If you have a decent GPU with enough memory there should be no problem.
...something like that...