Active Server Pages (ASP) was introduced in 1996 and bundled with Internet Information Server 3.0. ASP allows developers to create dynamic web pages by mixing standard HTML tags with server-side scripting code. Some key capabilities of ASP include generating dynamic web pages, processing HTML forms, creating database-driven pages, and tracking user sessions. The core ASP components include the Request, Response, Session, Server, and Error objects which provide functionality for handling requests, sending responses, storing session data, accessing server properties, and displaying error information.