~I'll try to give you the short version.
South Ossetia is a small area within the borders of Georgia but since the collapse of the Soviet Union, Russia has considered South Ossetia it's property. The area known as North Ossetia lies within the boundaries of Russia. Because South Ossetia lies with Georgian boundaries, the Georgian government has considered SO it's property. Most of the people in SO consider themselves to be citizens of an independent nation. The majority of the inhabitants of SO are not religiously or culturally Georgian; they speak Ossetian (a variation of Farzi similar to the old Persian language). Within SO, the people are divided between those who want independence from both countries and those who want to be part of Russia. It's a real mess.
Prior to the elections in 2003, the Georgian government was pro-Russia. As it turned out, the '03 elections were rigged and the new government is pro-Western (USA). (Think the CIA might have been involved in this fiasco, too???) This really ticked off the Russians.
Then in April 2008, Russia not only expanded its support for South Ossetia's independence but starting supporting another area within Georgia, Abkhazia, to break free from Georgia. Russia was ticked off at the US because we supported Kosovo's declaration of independence from Russia's ally, Serbia, and Georgia's push for NATO membership.
So, Russia and Georgia both decided to be big bullies and South Ossetia decided to pledge allegiance to Russia (they're bigger and have better toys) and the excrement is hitting the rotary cooling device. Now, Georgia has declared a "state of war" and the Bush administration is trying not to throw up all over itself. Just another day in the life of neo-con diplomacy.
Why? Simple, we overthrew another pro-Russian country and installed a pro-Western leader. We liked that oil pipeline that runs through Georgia (but Russia likes it even more). The Russians do not like us anymore and now Bush is wetting himself because there is no question Russia will win this little pissing contest and we don't want to send in troops to back Georgia (not that we have the troops to spare given how well they are doing in Afghanistan and Iraq, plus we have to hold some in reserve for Iran, Korea and Pakistan) and have the Russians REALLY ticked at us -- and get our asses kicked. Having backed Osama bin Laden, the Taliban and the Afghan war lords to get the Trans-Afghanistan pipeline and having blown that deal, Georgie the Younger doesn't want to lose even more profits from the Georgian pipeline because his daddy and Dick Cheney will probably put him in the time-out chair (not to mention what it will cost the American consumer). It's kinda like backing Big Brown in the Belmont.
So, now we have Americans facing a possible "Cuban Missle Crisis" and they're all having a breakdown because John Edwards boinked some bimbo. If this little skirmish doesn't end quickly and diplomatically in Georgia, no one will give a hoot about who got laid because we're all gonna be phucked.
P.S. As usual, there are no good guys or bad guys -- just a lot of gas and hot air -- with very, very, very big weapons that go BOOM! Before trying to lay the blame on either Russia or Georgia, at least check into Uncle Sam's involvement in stirring the pot and getting it boiling.