I have wondered this often. On straights the slipstream effect is perfect because the way I understand it the front car splits the air making almost a tunnel (a kind of vacum) behind him. This air is pressumably lower pressure creating less drag and preverbally sucking the second car forward. This is however a dissadvantage in cornering because you have less downforce.
When the car parts the air, immediatly behind it is the vacum but a few metres further back all the air is dumped back down again, creating excess drag. This is a very simple and vague description and is likely flawed but I think that is the basics.
If you have ever watched a truck go past fast you may see a load of dirt and debris from the road being 'sucked*' up behind it. I think there is a similar effect with an F1 car.
*I highlighted sucked because it is a laymans term. Sucking doesn't exist, it is when pressure is created lower than the atmospheric pressure of that area and the AP forces whatever object is being 'sucked' into the area of lower pressure. This is how a spoiler works, but if you want to know about that I will write about it tomorrow or better still look here.
http://www.f1technical.net/articles/10