The Node reference views module is a formatter for the CCK nodereference field. The default displays for node reference fields are just node titles, full nodes, or teaser. This module allows you to use the formatting power of Views module to display the node reference field: this means you can pick any fields on the referenced nodes, show them as a list, table, or grid, all in the place of the original node reference field.
Install the module as usual.
Go to the views admin and create your view. The view should have the same name as the field, including the automatic 'field_' prefix, eg 'field_my_noderef'.
To get started, you can clone the example view that comes with this module: it comes with the argument already set. You can add any fields and sorts and filters. One limitation however is that the order of items set in the CCK field isn't accessible to Views.
Go to the display settings for your field, and pick 'View' as the display option for your field.
Example & walkthrough
Suppose you want to make a music library with node types for albums and songs.
The song nodes have a node reference that points to the album the song is on. Album nodes have fields for artist and year.