A cell w/ the above formula will display $B$5, for example.
See Excel help for more info on usage/syntax, esp. the helpful abs_num option:
ADDRESS(row_num, column_num, [abs_num], [a1], [sheet_text])
In Excel 2007, there's a name manager that you can use to assign cell or range names. You can also select a cell or range of cells & then right click, & select "Name a Range...".