Probably the best resource for learning about words like foo, bar, and baz is the Jargon File (available in print as The New Hackers Dictionary). To take a brief excerpt about from the "foo" entry (the complete entry for foo runs over 2 pages):
foo: /foo/ 1. interj. Term of disgust. 2. (very common) Used very generally as a sample name for absolutely anything, esp. programs and files (esp. scratch files). 3. First on the standard list of metasyntactic variables used in syntax examples. See also bar, baz, qux, quux, corge, grault, garply, waldo, fred, plugh, xyzzy, thud.
The Jargon file goes on from there to list several possible origins including: The Jargon File/New Hackers Dictionary is quite a good read. I never let my copy stray too far from my side.

In reply to RE: foo bar and baz! by lhoward
in thread foo bar and baz! by BBQ

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