Whenever I send funds with XMR and use the refresh command to check my balance, Simplewallet will show a number of transactions, some adding money to my account and some withdrawing money from my account. Why is this?
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This is change coming back to your wallet. For instance, if you send 5 XMR, simplewallet might send that using a 10 XMR input, which it will then split and send 5 XMR to the person you are sending to, and send another 5 XMR output back to your wallet.
See section A, bullet 2 here for a bit more explanation in context:
https://getmonero.org/knowledge-base/protocol_explanation.html
jwinterm
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