How does entropy work?

I gather that the Universe is loosing energy (presumably as it radiates into space) and that "thinks tend towards Chaos.

However, where did all that energy come from? [/b]
http://www.sidis.net/ANIMContents.htm if you really want to know read the free online book because it really to complicated well essentially. Matter tends toward either chaos or order this determined the arrow of time because your perception always go with chaos so entropy is just the arrow of time. Also the universe is not loosing energy i.e. first law of thermodynamics you cant create nor destroy energy.