Malting is the process in which raw barley or another grain is made ready to become the main ingredient in the brewing process. The grain is steeped in water, then rested under precise conditions to encourage germination, and finally dried in a kiln and/or a roaster.

Postcard of a barley kiln, c. 1933. After germination the moist grains are transferred to the kiln, where hot air dries them. This kills the developing acrospires, or new plant shoots, without destroying the enzymes that were released during germination. pike microbrewery museum, seattle, wa
One of the key functions of malting is to degrade the grain’s proteins and to create the enzymes and modify the starches needed for the brewing process.
At this point, tiny roots known as “chits” become visible, and the damp grain is transferred to a germination room, which is usually kept between 16°C and 19°C (61°F and 66°F). There, the germinating barley is well aerated for 4 to 6 days and turned frequently. The turning of the barley keeps the rapidly growing roots from matting together; it also dissipates moisture, heat, and carbon dioxide produced during the grain’s respiration.
During germination, the grain enzymes kick their activities into high gear, producing malt sugars, soluble starch, and usable yeast nutrients such as amino acids.
Now the grain is ready to be fully dried. For this it is moved into a kiln.

Germination chamber at the Weyermann Malting Company®. The long shallow trough, called a Saladin Box, contains the germinating grains. courtesy of weyermann® specialty malts
For specialty malts such as caramel or crystal malts, the process is similar to that for base malts, with some alterations to give specialty malts their variations of color and flavor. Caramel or crystal malts are essentially stewed until their starches liquidize into sugars and then roasted to caramelize those sugars. Roasting done with little moisture does not result in caramelization but develops color and roasted flavors.
Characteristics of malts will differ partly depending on whether the raw grain used was two-row or six-row barley. Six-row barley malt tends to have more polyphenols and more enzymes than does two-row barley malt. This is principally because the kernels of six-row barley are generally smaller than those of two-row barley, giving six-row kernels a greater husk-to-endosperm ratio.
Bibliography
Briess Malt and Ingredients Co. Malting 101. http://www.brewingwithbriess.com/Malting101/Default.htm/ (accessed April 4, 2011).