I try and comment each function describing at a high level, but precise way, what the function does. The precision should be such that it is not necessary to read the body of the function to understand what the function does, or to re-implement it and have it work perfectly with any code that calls it.
Other than that, I try and keep functions small enough that the above is basically all the necessary documentation.
Once in a while, there may be something obscure or odd in what is being done in the code - I document that. Anything that isn't obvious or intuitively right, or that you spent some time thinking about, should be documented.
Just imagine you have a memory problem and will forget writing this program in a month. Then imagine you have to go back and fix it. What would you like commented and how could those comments be made most useful to you?