I run into this all the time -- my parents or friends ask me "What do you do?" I can tell them I'm a consultant but inevitably they always ask for more details. What do you say? Heck, my own wife barely understands it. For those of you that have ever watched Friends, she says I'm like Chandler - no one knows what I really do.
I normally go with something like "Basically, I work with an enterprise server product from Microsoft that makes it easier for companies to manage their information." Which is almost always followed up with "Oh! So you work with computers!?"
I've worked long and hard to remove the idea from people's heads that I know anything about "computers" because it always leads to phone calls from friends and family about why something is slow (which is normally related to the fact they randomly clicked on a blinking ad somewhere - but I digress).
All you SharePointers out there -- what do you tell your friends and family you do?
JR