You should know first how file deletion is done in FAT32/NTFS, and how other undelete softwares work.
Undelete software understands the internals of the system used to store files on a disk (the file system) and uses this knowledge to locate the disk space that was occupied by a deleted file. Because another file may have used some or all of this disk space there is no guarantee that a deleted file can be recovered or if it is, that it won't have suffered some corruption. But because the space isn't re-used straight away there is a very good chance that you will recover the deleted file 100% intact. People who use deleted file recovery software are often amazed to find that it finds files that were deleted months or even years ago. The best undelete programs give you an indication of the chances of recovering a file intact and even provide file viewers so you can check the contents before recovery.
Here's a good read (but not so technical): http://www.tech-pro.net/how-to-recover-deleted-files.html
