Can someone show me how to do trackbacks in wordpress?
 

I'm having a discussion on someone else's blog, and I want the discussion to be visible on my blog.

Is this how a trackback works? And if so, how do I make it happen in wordpress so I can publish the comments on my own site, and my own readers can follow the discussion?

Doesn't exactly work like that. I will show you an example on ICQ as I no longer post blog URL's here.