Conways genetic laws are delightfully simple. First note that each cell of the checkerboard (assumed to be an infinite plane) has eight neighboring cells, four adjacent orthogonally, four adjacent diagonally. The rules are:
Survivals. Every counter with two or three neighboring counters survives for the next generation.
Deaths. Each counter with four or more neighbors dies (is removed) from overpopulation. Every counter with one neighbor or none dies from isolation.
Births. Each empty cell adjacent to exactly three neighbors--no more, no fewer--is a birth cell. A counter is placed on it at the next move.
It is important to understand that all births and deaths occur simultaneously. Together they constitute a single generation or a "move" in the complete "life history" of the initial configuration. Conway recommends the following procedure for making the moves:
Start with a pattern consisting of black counters.
Locate all counters that will die. Identify them by putting a black counter on top of each.
Locate all vacant cells where births will occur. Put a white counter on each birth cell.
After the pattern has been checked and double-checked to make sure no mistakes have been made, remove all the dead counters (piles of two) and replace all newborn white organisms with black counters.
You will now have the first generation in the life history of your initial pattern. The same procedure is repeated to produce subsequent generations. It should be clear why counters of two colors are needed. Because births and deaths occur simultaneously, newborn counters play no role in causing other deaths and births. It is essential, therefore, to be able to distinguish them from live counters of the previous generation while you check the pattern to make sure no errors have been made. Mistakes are very easy to make, particularly when first playing the game. After playing it for a while you will gradually make fewer mistakes, but even experienced players must exercise great care in checking every new generation before removing the dead counters and replacing newborn white counters with black.
Please see http://kgameoflife.sourceforge.net/gameoflife.php for more info on the game.