The gears on the left / front give you a range, the ones on the right lets you fine tune the cadence / speed you need.
Left 2 and right 1-7 for normal ridding.
Left 1 and right 1-4 for hills
Left 3 and right 5-7 for going fast and down hill.
http://bicycletutor.com/gear-shifting/
http://sheldonbrown.com/gears.html