@Jan Fowler: Yes, that is correct. White hat SEO is doing this in an ethical way with good content, good page optimization and decent backlinking.
In black hat SEO everything goes to game the system and to get your page at the top of the rankings. So that means spamming your webpage on the internet, getting links from link farms, hidden texts in the same color as the background color and so on. In other words, all the known tricks to improve your ranking but that don't really serve your readers.