[Neo]

I think it is through a process of self-referencing that consciousness arises. A crude example involves a photon trapped between two mirrors. The wave reflects onto itself so that the photon can "see" itself. I think there is a complex process of self-referencing occurring in the brain which gives rise to the feeling of being self-aware.

Notice when you are not thinking about anything, or are just "zoning out" staring off into space, that you don't feel quite as aware? Our sense of identity varies from time to time based on how we feel. As we look down the food chain we see creatures with decreasingly complex levels of intelligence, and consequently decreasingly levels of awareness. A dog is driven by instincts, but is still more self-aware then a cockroach for example.