Pseudocode is basically just for designing code, you're basically writing out code in written English. It's a good stepping stone from going from your original algorithm idea to actually writing out the code. Given pseudocode, you should be able to figure out the algorithm and vice versa.
The problem with pseudocode is that there isn't one set convention, so it's best to take a look at the past exams, you'll see a few examples of it - especially important to know what VCAA expects you to understand - e.g. the notation where you have assignment as

. Often you might come across pseudocode that's a lot less structured, e.g. the example that Mark Kelly provides on VCEIT:
http://www.vceit.com/designtools/pseudocode.htm. (I prefer this looser pseudocode, it seems a bit more logical as pseudocode is a way for you to design code, but we have to do what VCAA wants us to do). What your teacher expects for SACS might also vary a bit to what you're expected to interpret on the exams.
VCAA 2010, Short Answer Question 9 (page 18) had a example of pseudocode for password validation:
http://www.vcaa.vic.edu.au/vcaa/vce/studies/infotech/softwaredevel/pastexams/2010/2010itsoftdev-w.pdfMost exams, including last years and the sample exam for this study design have had some form of pseudocodelike this, but I think this one is a good one to use to learn it initially (fairly simple what's going on here):
Begin
Get Password
Charcount
1
PasswordChar
1st Character of Password
ValidPassword
True
Repeat
PasswordChar
Next Character of Password
Charcount
Charcount +1
If (PasswordChar is Not Numeric) Or (PasswordChar is Not Alphabetic) Then
ValidPassword
False
EndIf
Until Charcount = length(password)
If ValidPassword = False Then
Print ‘Password rejected’
Else
Print ‘Password accepted’
EndIf
End
Have a go at trying to read this (if you're unsure of any steps here, let me know). Things like "Charcount

1" is assigning the value 1 to a variable named Charcount (representing the direction of data, I guess); Repeat is a loop that keeps going until the condition is met etc. Also note the Begin...End kind of structure.
Now this doesn't represent all the possibilities you might see with pseudocode, if you look in the textbook/other exams, you'll notice a lot more other things, things like For ... EndFor, While...EndWhile - if you have the textbook there's a list of all that stuff. There's also stuff for naming procedures (functions) etc.
There's also this worksheet by Mark Kelly (the vceit.com guy) and another teacher:
Pseudocode Questions:
http://www.edulists.com.au/sofdev/exams/SD%20pseudocode%20error%20questions-mk.docSuggested Solutions:
http://www.edulists.com.au/sofdev/exams/2011/Pseudocode%20Answers%20-nm.pdf Might be worthwhile having a shot at those. You could also try looking at some code you've written and writing out the pseudocode for that.
Also, just as an aside for future reference, avoid using all capital letters in thread titles, I've fixed it up here for you now.
edit: fixed indentation in code example (sort of, it's still out of alignment a bit)