Another article:
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/07/01/wiran101.xml&page=1)
In Three Words: NOT GOOD NEWS!
Why? Because Iran happens to be a democracy. Not a democracy like the USA, but a democracy nevertheless. Which means people vote for who the leaders are. Clerics do have much power though, and they do decide who gets to run in the elections (I never said they were free or fair), but there are possiblities for people rebelling via the polls...moderates did seize control of Iran in the 1990's, so another rebellion via the polls is very, very possible.
The people that voted for President Ahmadinejad are rioiting because President Ahmadinejad has promised far too much and Mr. Ahmadinejad has ratioined oil. Therefore, it could be concluded that, come next election, the people who voted for President Ahmadinejad will vote for the reformists, not because they like the reformists, but because they hate Ahmadinejad's stupid policies. And not just that, but they hate his DOMESTIC policies. Wiping Israel off the face of the map, gaining nuclear power, taking over the Middle East, very good idea.
If you like dealing with Iranian moderates, then this is very, very good news. However, it seems that I doubt few Westerners wants to deal with Iranian moderates (and for good reason), it's just plain overrated as a breakthrough.
Oh, and a note. 1) Iran hates Taliban. Taliban is Sunni, extermists, and overall, evil. And Iran is investing in Afghanistan, gaining much influence in it. [However, you can argue that Iran is also funding Taliban, but it's a "he say, she say" type deal, I'm not getting into it]
2) The only terrorists who Iran is funding in Iraq is SCIRI (and prehaps Al-Sadr). SCIRI, by the way, controls the Offical Government of Iraq. They are still terrorists, true, but Iran is helping that government out by funding that government's personal terrorist cells, so if Iran stop funding the Shia terrorists, then Sunni terrorists might win.
(Yes, we must fund terrorists to win the war on terror. The enemy of my enemy is my friend)
The only problem is Al-Sadr. SCIRI and Al-Sadr hates each other, so it is a suprise why Iran would devote funds to both parties, especially since Al-Sadr is a nationalist and SCIRI based itself inside of Iran while it was an exile party. So I don't think there would be much support for SCIRI. Still, the enemy of my enemy is my friend.
EDIT: Somehow, I really worry about people taking sides on wheter President Ahmadinejad is a good guy or an evil guy. When attempting to predict what will happen, you don't want any personal biases to come through, and you don't want to appear to be idiots. I'm not crying tears or cheering either way.