This link should get you started. Long story short, a div that has been styled to look like a scrollbar is used to catch click-and-drag events. Wired up to these events are methods that scroll the contents of another div which is set to an arbitrary height and typically has a css rule of overflow:scroll (there are variants on the css rules but you get the idea).

I'm all about the learning experience -- but after you've learned how it works, I recommend using a library (of which there are many) to do it. It's one of those don't reinvent things...