Basically you have to build a fued up so that it means something, take the example of Bret & Owen Hart.
They started off as brothers and best of friends, then they had a little falling out at Survivor Series '93. Then they start to patch things up and become best buddies again and have a tag-team title shot at the Royal Rumble '94 against the Quebecers. The Harts lose the match and then Owen turns on Bret after the match, by attacking the leg that Bret had injured during the match. Owen then is shown on the big screen laying into his selfish brother Bret.
They start to build the storyline up that Bret wants Owen to calm down, but Owen doesn't want to. Owen's sick of living in the shaddow of his older/more succesful brother Bret. So tensions come to a head and the match it set for Wrestlemania 10, Bret Vs Owen 1 on 1. Owen wins the match cleanly with a sneaky victory roll pin beating his brother Bret, who then goes on to win the World title later on in that ppv against Yokozuna.
So now Owen is going round telling everyone that he should be champion because he beat Bret (the new champion) last night (before bret won the title). So they go onto the next PPV and they build Owen up by having him win King of the Ring and they continue to build up Bret by having him beat Diesel.
Then somewhere in the meantime Owen is winning matches with the help of the Anvil who's helping Owen cheat. So when Owen & Bret get their match booked, they want to settle their score once and for all. So it's decided to help keep outside interfearance out they're gunna make it a cage match for the world title Bret Vs. Owen. Only one man can win and there's no way to cheat, mano y mano.
Then Bret wins the match and Owen has no excuse because Bret beat him fair and sqaure, so it was the end of the fued (it would still run under the surface but Owen was no longer a contender to Bret's title).
You see how they built this story up over 4 pay-per-views, 9 months of work to build from the original dispute to the blow-off cage match, all the fans wanted to know who's the better man and who'll come out on top. Now imagine how much different it would of been if at the Royal Rumble after their first little dispute Bret had said "Hey Owen, I want to beat the crap out of you for what you did at the Survivor Series, so I wanna face you one on one at the Royal Rumble in a cage". Sure that still would of been fun to watch, but it wouldn't of meant half as much as their actual Summerslam match ended up being cos now you have theoreticly the top 2 guys in the company, the world champ vs. the king of the ring, Bret was the older brother but Owen held a clean victory over him.