How do memories work? how are we able to imagine, think, learn. What is the substance of thought?

You have asked a question that doesn't have a simple complete answer. It can't be fully answered, because scientists are currently working to understand many details of your question. And, it isn't simple, because the brain is quite complex.

 

I'm not an expert, and don't know if there is an expert in that area who frequents sfn. If I understand correctly, memories are stored among around 100 Billion synapse (interneural connections). Start here for some more information. Good luck; papers are being pubished frequently in this research area.

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Moderator Note

Speculation/hijack about the code used has been split http://www.scienceforums.net/topic/85016-the-code-for-memories/

this is one of the most beautiful and smartest questions of all times- it unites what we see and what we don't see and brings forth scientific research as it definitely requests a new mentality and new means of analysis. i would also be very interested to receive any link to the latest research done in this field...

Neurons. Maybe a bridge locus.

dendrites and their plasticity are very important to learning and memory

 

http://www.nature.com/nature/journal/v462/n7275/full/nature08577.html

 

http://onlinelibrary.wiley.com/doi/10.1002/jnr.20759/abstract;jsessionid=E60D84E93AC86848130CBF7980A9B75D.f03t03

Visual memory may be explained by the two streams hypothesis. http://en.wikipedia.org/wiki/Two-streams_hypothesis.

 

According to this hypothesis, the primary visual cortex would relay visual stimulus via the ventral stream to the temporal lobe, stimulating new long term memory formation.

 

This is one way to think about memory formation.