How exactly does a sound suppressor work?
OH my GOD! Nobody called me ?
OK, here goes. There is very little concensus on EXACTLY how silencers work but at a basic level, every suppressor is a kinetic energy trap. That is they trap and then release kinetic energy in a slower manner to reduce the magnitude of the energy available to produce sound that we hear as a "bang".
There are hundreds of different silencer designs that all work in a slightly different manner. Depending on the beliefs of the designer. Personally I think there are a number of factors at work inside a silencer and they are all affecting the noise reduction. These factors include but may not be limited to: Expansion, trapping, reflection, turbulence, heat absorption and resonance.
A suppressor will always sound quieter in an open field than in an enclosed area like a room.
CRAP! Muzzle blast is muzzle blast regardless of where the firearm is fired. Inside a room, the muzzle blast and sonic crack are reflected back towards the shooter making it appear to be louder. In a field the shooter never hears the sonic crack cause it propogates away from the shooter's position. If you put a sound meter on both cases, it would show the same peak noise level.
I've heard that guys used to make them with steel wool. I suppose any thing that will slow the gas down a bit will help.
True. Steel wool probably works more from the point of heat (energy) absorption. Steel wool is not the best material to use cause it can burn.
wow that subsonic .22 ammo was quieter then the cycling of the action!
Pretty close. Keep in mind video cameras limit the noise of the shot and are not a good comparison tool.
Ownership by the General public is Illegal and carries a mandatory prison sentence
CRAP! A silencer is classed as a "Prohibited Device" the same as lots of other prohibited devices and carries no level of punishment greater than any other prohibited device. To my knowledge there is no such thing as a "mandatory" prison sentence in Canada. Not to mention most LE/legal types have no idea how to properly sound test a silencer to determine if it even is a silencer.
do they need to be cleaned at all, or do the internal parts(are there any?) need to be replaced after x amount of rounds?
Depends on the can, its construction and the caliber. The majority of rifle caliber cans are essentially self-cleaning and tend to be of sealed steel construction these days. Pistol caliber cans are more often made of aluminum and do need to be cleaned on a regular basis.
In general, a steel rifle silencer should last the life of several barrels meaning they are pretty much maintenance free. No parts touch the bullet so there is no need to replace anything.
If you want to learn more about silencers, how they work and what exactly is inside them, buy the books, Silencer History and Performance Vol 1 and 2, which are available from Amazon.ca.
http://www.amazon.ca/exec/obidos/ASIN/0873649095/qid=1140896671/sr=1-2/ref=sr_1_0_2/702-3329298-3958466
http://www.amazon.ca/exec/obidos/ASIN/1581603231/qid=1140896561/sr=8-5/ref=sr_8_xs_ap_i5_xgl14/702-3329298-3958466
Otherwise, go to the Silencer Tests website
http://www.silencertests.com and troll through the Images Gallery. There are lots of pics of internals to see.
A pop bottle might work for one shot out of a .22, but anything else would blow it off the muzzle.
MMMMMmmmmmmmm .................... O .... K ......... If you say so.

Otherwise, not something any of us should be discussing, here or anywhere. However in some parts of the world these sorts of things are not criminal. Here is a pic of a pop bottle silencer adapter.
Some older models had plastic wipes that would have to be replaced.
You are refering to the infamous "Hush Puppy". Wipes are not commonly in use in the West anymore due to some stupid laws but they can still be found on Combloc silencers.
In this pic the plastic disks are new wipes, which will typically last 20-50 shots.
Not all sound supressors are illegal. As i have said ones used by wildlife control purposes can be purchased for this use. Alberta has a store that sells them.
Yes, ALL silencers are illegal for civilian ownership in Canada and NO, there is no store that sells them, anywhere in the country. Any government agency may purchase silencers, this includes, the military, law enforcement, provincial and civic government agencies.