I am fairly certain the D80 does... I'm a canon man myself but i'm sure the Nikon is similar.
What you do is set the range for the bracketing (i.e. -1 to +1, or -2 to +2, depending on how much bracketing you wish to do). Once activated you take 3 pics every time. So, you set up your tripod and then take 3 sequential exposures. one will be -1, one normal and one +1. You can then manipulate these in Photoshop to get the HDR effect.
There are more reasons for using bracketing than HDR, so it is not always necessary to use the tripod, but for the HDR effect you should use a tripod.