Chain break tool

Fixing a broken bicycle chain is pretty easy. If you buy a chain tool, you will find that this is all you need and such a tool will work with every type of chain.

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[edit] Steps

Push the pin out by screwing the pin of your chain tool in just before the pin comes out. Be very careful to not push the pin all the way out, as it is extremely difficult to get back in.
Snap the two pieces apart.
Click the two links back in place with the pin facing you. This will make things a lot easier in step 4.
Hold the pin facing you (which is a lot easier), and push it back into both links until it comes out evenly on both sides.
Grab the chain on each side of your newly connected links and move it from side to side to loosen up the new connection. It also helps to move the chain tool to the other side of the joint just made, and push the pin very slightly to free the two outside plates of the link from the central section.

[edit] Tips

The chain breaker tool is the one tool that will pay for itself. Chains break off at times for no apparent reason. Keep it with you when biking, as it can also help another stranded cyclist.
Always keep an old chain or those extra links left over from a new chain replacement, as spares. Remember though that there are several types of chain made to fit specific blocks, and one may not be compatible with another.
Pins in the chain are specific to the number of speeds your cassette has. Ask at your local bike shop if you have any questions about this.