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I've read the core rulebook, looked it up on paizo, and even tried google, but I just can't find an explanation that explains to me what fame is in a way that I understand. Somebody please help!
Try the free download Pathfinder Society Roleplaying Guild Guide, particularly page 26 for an in-depth explanation.
Essentially Fame is what you earn as you adventure in PFS. The more successful you are the more Fame you earn. The more famous you are the more willing people are to do things for you that don't directly cost them anything (like sell you rare items).
You also earn a point of Prestige each time you earn a point of Fame. While your Fame never goes down (Lord Laird Bates? I've heard of him! I sold him a +3 rapier last month!) you can spend Prestige for various things like basic magical items or special services. (Lord Laird Bates? I've heard of him. Didn't the Society have to get him cured of a disease last month?) Prestige represents trading on your reputation instead of paying for things. It is a limited resource after which people will get tired of doing favors for you.
So as you level up you will have two numbers. The total Fame you have earned in your career and the amount of Prestige you have remaining. As long as your Prestige is high enough you can "buy" any of the awards on Page 26 of the guide.
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Have you checked out the Pathfinder Society Roleplaying Guild Guide? Page 26 has both the mechanical and "in-universe" explanation for what your character's Fame score means.
The short version is that it measures how trusted you are by your faction, and thus controls the upper limit for the cost of any individual item you purchase (beyond those exempted be being part of the Always Available list on page 24).
EDIT: Ninja'd!
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Fluff wise:
Its how well known you are in the society. Its primary purpose is to allow you access to items. So if you go to Q in the basement of the pathfinder soceity , put a sack of gold on the table and ask him for a vorpal sword they're not going to trust you with one of those or bother to get one made for you unless they know you well enough to know that absolom PD won't be looking for it tomorrow.
It also has minor effects on how well people know you and respect you in game.
Mechanics wise: Fame sets a cap on how much gold you can theoretically spend on an item, as seen in the chart. after level 5 or so this rarely matters for most characters as you'll be able to spend more than you have on hand.
Lord Laird Bates
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Fluff wise:
Its how well known you are in the society. Its primary purpose is to allow you access to items. So if you go to Q in the basement of the pathfinder soceity , put a sack of gold on the table and ask him for a vorpal sword they're not going to trust you with one of those or bother to get one made for you unless they know you well enough to know that absolom PD won't be looking for it tomorrow.
It also has minor effects on how well people know you and respect you in game.
Mechanics wise: Fame sets a cap on how much gold you can theoretically spend on an item, as seen in the chart. after level 5 or so this rarely matters for most characters as you'll be able to spend more than you have on hand.
Thanks, this helps clear things up a lot.