What does "in the image of God" mean?

[Genesis 1:26](http://www.biblegateway.com/passage/?search=Genesis%201:26&version=NIV) : > Then God said, “Let us make mankind in our image, in our likeness, so that they may rule over the fish in the sea and the birds in the sky, over the livestock and all the wild animals, and over all the creatures that move along the ground.” Does this mean humans look like God, complete with hands, feet, and sexual organs? Or is it referring to something else?