This requires a very broad answer. I'll just answer with something simple (forgive me if I miss anything).

King Herod (yes, the one from the bible) ruled Jerusalem from 34- 4 BC after taking over after the Hasmonean Dynasty who had ruled since 140 BC. Herod was essentially a vassal to Rome since they had the most power in the region, a power that would only increase at a very fast pace. When Herod died, Rome divided his kingdom among his three sons. Rome pretty much had full control by the year 6 but they allowed the kings to remain kings and the customs of the Jewish people to continue without an overbearing presence. For a short period, little happened.

A lot begins to happen after awhile but I will keep it as to the point as possible. After time Roman influence expanded to the dismay of the Jewish people. Political tensions rose up in all the Eastern Mediterranean and as result Rome continued to put more pressure on the Jewish kings (Herod’s sons) and they began to interfere more with the Jewish government and money (taxes). Caligula disrupted several “conspiracies” against him from Roman governors in Egypt and Jerusalem and changed the political scene in both to the benefit of the emperor. Tensions resulted in riots in Egypt, Palestine, and other parts of the near East. Jews refused to accept the worship of the emperor or any of the Greek/Roman culture. Several prophets and revolutionaries rose up to try and shake off the empire. Shortly after the believed time of Christ, two Jewish brothers, Jacob and Simon, started a revolt that would last two years (46-48) but the Romans would put this down and both brothers were executed. The next major revolt in 66 was big enough to start the first Jewish-Roman war. By this time, Nero was the emperor of Rome and he sent the general Vespasian (future emperor) and what would eventually be 3 legions and 60,000 soldiers to squash the rebellion and begin to put Judea under their full control. Just a couple years into the war, Nero commits suicide and Vespasian sees an opening to the throne that he decides to take, leaving his son Titus (also future emperor) and other generals to finish the campaign. Jerusalem was the last major defense (not the last overall) and was put under siege in the year 70, which would last most of the year. In the fall, Roman soldiers sacked and destroyed the city and the Second Jewish Temple. Originally the number of Jews killed was estimated to be enormous, but recent history suggests that it was not quite as high. Although, many would still be killed, sold into slavery, or forced to leave.

This event had a major influence on the Jewish and Christian faiths and altered their courses and even influenced many biblical writings. To Jews, the city of Jerusalem was the center of their world, its importance to them at the time cannot be understated. It is significant in the present time because, as you should now, it would not be until almost 70 years ago that Jerusalem once again belonged to a Jewish state.

Josephus and his book on the account of the Jewish War is the best sources we have for what happened, as well as certain other aspects of Jewish life.

For other books on the subject, I suggest these to start,

http://www.amazon.com/When-Jerusalem-Burned-Gerard-Israel/dp/0853031479

http://www.amazon.com/Israel-Revolution-6-74-C-E-Political/dp/0800604423