When does System.gc() do something?

In practice, it usually decides to do a garbage collection. The answer varies depending on lots of factors, like which JVM you're running on, which mode it's in, and which garbage collection algorithm it's using.

I wouldn't depend on it in your code. If the JVM is about to throw an OutOfMemoryError, calling System.gc() won't stop it, because the garbage collector will attempt to free as much as it can before it goes to that extreme. The only time I've seen it used in practice is in IDEs where it's attached to a button that a user can click, but even there it's not terribly useful.

The only example I can think of where it makes sense to call System.gc() is when profiling an application to search for possible memory leaks. I believe the profilers call this method just before taking a memory snapshot.

You have no control over GC in java -- the VM decides. I've never run across a case where System.gc() is needed. Since a System.gc() call simply SUGGESTS that the VM do a garbage collection and it also does a FULL garbage collection (old and new generations in a multi-generational heap), then it can actually cause MORE cpu cycles to be consumed than necessary.

In some cases, it may make sense to suggest to the VM that it do a full collection NOW as you may know the application will be sitting idle for the next few minutes before heavy lifting occurs. For example, right after the initialization of a lot of temporary object during application startup (i.e., I just cached a TON of info, and I know I won't be getting much activity for a minute or so). Think of an IDE such as eclipse starting up -- it does a lot to initialize, so perhaps immediately after initialization it makes sense to do a full gc at that point.