All you do when you create static routes is tell your router what the next hop is to get to the destination network. You're pointing it in the right direction!
So, if you have three routers, A, B, and C and you want to get to the ethernet network on router C from the ethernet network on router A, you could use static routes! Router B would know about the directly connected ports on routers A and C, but wouldn't know about the networks on the other interfaces of routers A and C. For this you could create static routes on router B to say:
To get to the eth network on router A, go via the serial port on router A at this address. Router A will then be able to route the packets from it's serial interface to the eth interface.
The same would go for router C!
So, now router B knows about it's directly connected interfaces on routers A and C, and also about the other networks on routers A and C.
Now, you can tell router A how to get to router C. You point the traffic at router B which knows about the networks on router C.
You can also tell router C how to get to router A. Point traffic at router B, which knows how to get to all the networks on router A.
Now all three routers know how to get to all the available networks! Easy!!
Of course, as the number of routers grows and alternate paths become available, it would be better to implement dydmanic routing, using IGRP or EIGRP, but that's another story!!
Take care!
Chris.