(I am aware that Setrak has already written a diary on this, but I've decided to try and flesh it out, since most people don't seem to understand the situation. My information comes mostly from Wikipedia and following the references there.)
As most of you probably know, Russia has ordered troops into the disputed region of South Ossetia after Georgia escalated the conflict by an offensive against the Ossetians. Georgia has withdrawn its 2000 soldiers from our Iraqi coalition, and although an actual declaration of war does not seem to have occurred, its clear that a war is indeed occurring.
My own take on the situation is that Georgia is somewhat at fault here for escalating the conflict, but Russia also seems to have had its moves planned out, and if its indeed escalating the conflict and moving against Georgia proper (rather than restricting its intervention to Ossetia) as Georgia claims, then its also at fault.