very mild swearword used mainly in Uk but also very common (I am told) in Austrailia. Can be used before or in the middle of words/phrases to emphasize meaning - be it good, sarcastic or bad. It really does sound silly when americans say it - think about it, it's the equivalent to a brit saying 'mall' or 'nimrod' It's just not right. try saying some of these in an american accent for amusment (really no offence look at brit's saying sidewalk and math - equally amusing!).
bloody good idea (well done! good thinking)
Oh bloody hell (damn)
have a bloody good birthday (happy... or vaguely evil)
too bloody right (in agrement)
or my personal favourite 'abso-bloody-lutely' (yeah innit)