This is normally a two hour lecture but I'll try to condense.
First of all the quatum state is defined as the mathematical construct that defines a quantum system. This would include the mass, velocity, position and energy level of all of the particles that make up the quantum system.
The Pauli Exclusion Principle applies to all particles of half-integer spin. This category includes all fundamental particles that make up what we normally think of as matter (protons, electrons, quarks, etc.) and it excludes all particles that mediate forces (photons, gluons, etc).
Briefly the principle states that no two electrons (having the same spin) can occupy the same energy level in an atom. As an analogy, think of the sun as the atomic nucleus. The planets are the electrons (they dont actually revolve around the nucleus but the orbit is analagous to an enery level in the atom). Now imagine that each "orbit" can only contain one "planet" or electron.
Now we could put another "planet" in that orbit if it had a different spin. Think of the earth as being a half-spin in an equatorial orbit around the sun. If you had a integer spin "planet" it might be analagous to being in a solar polar orbit.
Very simply put, you can't put two (indentical) things in the same place. Probably an even simpler view would be to think of an atom as having a wall full of slots, one for each location than an electron can occupy and each slot can only hold one.