A NIDS is a Network Intrusion Detection System, a system to detect intrusions  from the network and take counter-measures ranging from (temporarily) blacklisting  to logging through responding with specially crafted IP packets to slow  down or kill the attacking host.
It extends the principle of IDS to the network.  It is usually meant to run on a firewall or a sensitive server.
Snort is one such  NIDS.
      This article was first written in October 2003 for the BeezNest technical website (http://glasnost.beeznest.org/articles/65)