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Amplify increases magical damage or healing taken by the recipient. Basically you might use it on someone in your party or raid who is taking only melee damage to improve healing done to them (e.g., on the tank). You could also use it when taking spell damage provided that you are willing to accept the tradeoff between extra spell damage taken versus extra healing received.
Dampen reduces magical damage or healing taken by the recipient, so you might use it on yourself or party members when fighting enemy casters (although your healer may not be too happy). I'd typically only use this if I didn't have a healer in my party (or was soloing) when fighting casters.
-- Cirk
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