A “diacetyl rest” is leaving your beer in the fermenter for two or three days after it looks like the fermentation is complete.
That will give the yeast time to clean up the diacetyl they've produced.
Given time, when the yeast is done with its fermentation work, it will actually re-absorb the diacetyl from the beer. Higher temperatures accelerate this process. Once it's back in the cell, the diacetyl is converted into acetoin and subsequently into 2,3-butanediol. The end result is that the diacetyl is no longer in your beer, and the by-products of the cleanup effort have flavor thresholds so high they're not worth worrying about.
If you're brewing a lager, try this trick for your future Batches :
Start allowing the fermentation temperature to rise once the beer has fermented to half its original gravity. By that point, you're far enough into the fermentation that the yeast aren't going to generate any more “ale” characters (such as fruity esters) and you've still got enough time to let the temperature rise to a useful level, say, 65°F. Maintain this temperature until the diacetyl is gone or until the end of fermentation, whichever is later, then rack for lagering.
Hector