Well I've got to say both sides are at fault...
The Russian Federation has been anticipating a fight for Ossetia for several months, and had forward deployed a large number of troops along the border for months, just waiting for a reason to leap across. How do you think this exploded onto the world stage in the last two days? You know how long it takes to mobilize a motorized-rifle battalion, let along march it into the mountains of Ossetia?
The Georgian decision to attempt to force Ossetia to the negotiating table with military force was a mistake on their part, but Russia's decision to use significant aerial assets to demolish Georgian resistance will only inflame public support of the Georgian government. I wouldn't be surprised if an American Carrier group is steaming to the Black Sea as we speak. America and Georgia are close allies, and if this conflict lasts for more then a week or two you're going to have to anticipate American military involvement in support of Georgia.
Georgia has been overly zealous in its use of artillery (They are old soviet rocket and indirect fire systems with low accuracy) resulting in significant civilian casualties in Ossetia.
Russia has been overly zealous in its use of air strikes, attacking Georgian towns, the capital, and one of Georgia's only two ports. The Russian Federation uses much more "dumb" bombs then America does and has targeted civilian and infrastructural targets within Georgia itself. The attack on the port is more indicative of a general offensive against Georgia then an operation meant to merely defend Ossetia.
In terms of force strength, Georgia doesn't stand a chance. Their entire army is a mere 15,000 strong active duty force, 2,000 of which are currently in Iraq. They have around 20 Su-25 Frogfoot Ground Attack Aircraft, and that is it. 3 ground Battalions equipped with a mixture of western and soviet weaponry.
They are up against the Russian Federation and their 300,000 strong active duty force, they've deployed at least 3 Motor-Rifle Battalions to the fight. Several Regiments of Ground-Support Aircraft, and are supported by Ossetian forces.
Georgia's western allies won't allow it to be beaten up by Russia, expect unilateral sanctions from the EU at the very least, probably air support from bases in Poland and Germany by NATO, and perhaps even American Ground Forces being deployed if Georgia's back is pushed to the wall.
This conflict will not be resolved in the UN, Russia's position on the security council will make that impossible. This is gonna come down to a test of arms.