In short, the term denotes works set in an era or world where steam power is still widely used—usually the 19th century, and often set in Victorian era England—but with prominent elements of either science fiction or fantasy, such as fictional technological inventions or real technological developments like the computer. It is often associated with cyberpunk and shares a similar fanbase. (Wikipedia.com)
The creativity and imagination that often makes up steampunk is a blending of the old and new, of retro and modern. Some of the arts and crafts created around this genre is uniquely handcrafted. Rent the anime movie by Katsuhiro Otomo titled Steamboy or build your own cool steampunk gear (Visit the Steampunk Workshop for ideas).