How does synchronized work in Java

First, here's a sample:

public class Deadlock {
    static class Friend {
        private final String name;
        public Friend(String name) {
            this.name = name;
        }
        public String getName() {
            return this.name;
        }
        public synchronized void bow(Friend bower) {
            System.out.format("%s: %s has bowed to me!%n", 
                    this.name, bower.getName());
            bower.bowBack(this);
        }
        public synchronized void bowBack(Friend bower) {
            System.out.format("%s: %s has bowed back to me!%n",
                    this.name, bower.getName());
        }
    }

    public static void main(String[] args) {
        final Friend alphonse = new Friend("Alphonse");
        final Friend gaston = new Friend("Gaston");
        new Thread(new Runnable() {
            public void run() { alphonse.bow(gaston); }
        }).start();
        new Thread(new Runnable() {
            public void run() { gaston.bow(alphonse); }
        }).start();
    }
}

What I don't get is how the blockage occurs. The main function initiates two threads that each begin their own bows.

What exactly does 'synchronized' block? The same function running for the same object (as I originally thought)? The same function for all objects of the same class? All synchronized functions for the same object? All synchronized functions for all objects of the same class?

Help me out here.