Can someone please explain to me what happens inside an interrupt service routine (although it depends upon specific routine, a general explanation is enough)? This always used be a black box for me.
There is a good wikipedia page on interrups handlers.
"An interrupt handler, also known as an interrupt service routine (ISR), is a callback subroutine in an operating system or device driver whose execution is triggered by the reception of an interrupt. Interrupt handlers have a multitude of functions, which vary based on the reason the interrupt was generated and the speed at which the Interrupt Handler completes its task."
Basically when a piece of hardware (a harware interrupt) or some OS task (software interrupt) needs to run it triggers an interrupt. If these interrupts aren't masked (ignored) the OS will stop what it's doing and call some special code to handle this new event.
One good example is reading from a hard drive. The drive is slow and you don't want your OS to wait for the data to come back; you want the OS to go and do other things. So you set up the system so that when the disk has the data requested, it raises an interrupt. In the interrupt service routine for the disk the CPU will take the data that is now ready and will return it to the requester.
ISRs often need to happen quickly as the hardware can have a limited buffer, which will be overwritten by new data if it's now pulled off quickly enough. It's also important to have your ISR complete quickly as while the CPU is servicing one ISR other interrupts will be masked, which means if the CPU can't get to them quickly enough data can be lost.