In a sense the situation is much deeper than that.
The vast majority of the countries population which is over 70 million are very suspicious of the west.
Iran has always had a shaky relationship with Europe. Just look back on previous times, when it was known by the name of Persia and the European invasion or even its own previous empires.
It should be noted that the population of Iran is very young, with an estimated 75% of the people under the age of 30.
Younger people generally do tend to be more 'left wing' or 'liberal' with a strong will for change.
Naturally people within this liberal grouping will have different views on ideology and belief.
By European standards we may not understand Iran clearly. To us some of their laws seem barbaric, backwards, a through back to the middle ages. (Execution of children for crimes) (Illegality for woman and men to dance together)
But the last thing the Western World should do is play into the hands of the current administration.
Its an internal Iranian problem, that needs to be sorted by Iranians. They are a strong proud people. Outside interference will be simply met with hostility and suspicion.
To that user who stated that they could see USA and Iran engaging in military conflict, the chances of that actually happening are very slim.
The USA is still struggling to cope with Afghanistan, not to mention the losses and difficulties it is currently facing in Iraq with a hostile home population towards the war.
On top of that you have a belligerent and defiant North Korea who openly admits its on a nuclear build up. Taking that into account, USA currently has its eyes elsewhere.
The only real scenario that could provoke military action would be an Israeli bombing of Tehran’s nuclear facilities. This would naturally cause an 'Iranian backlash' which USA would be forced to intervene with.
In terms of the election itself? The results do look suspicious. But then again, we are going by opinion polls. We all know, opinion polls can be wrong. Just look back on our own histories. Despite what we may think the current Iranian president is very popular and can draw on a lot of support including armed militias and religious leaders who hold a lot of power within the state. The president himself is answerable to the Guardian Council and Supreme Leader. It does have similarities to democracy prevalent in Europe in late 19th centuries such as Prussia (examine the Bismarckian era), The simply fact is that Iranians do take their limited democracy very seriously. Students were reportedly flying home from parts of the world just to be able to vote in this election. (Something those of us in the free world should bow our heads in shame, some people not willing to get their fat arse of the sofa and walks five minutes down the road)
The Election could simply be a dispute amongst the young of Iran and what direction the country will take in future. While Ahmadinejad is not a likeable man to many in the Western World, he was democratically elected previously by the people. While there are large scale protests on the streets, these do not yet seem to have the momentum and countrywide support that was last seen in the 1979 revolution. Perhaps one of the reasons the current administration of Iran is so worried is because they are seeing and drawing similarities between the events of 1979 and those of 2009.
If the military does crack down on supporters for the opposition it will be a very sad day for democracy in that region which has already seen enough turmoil. It could easily go like Tiananmen square in China, a ruthless massacre of protesters, and then once things calm down, everything returns to normal, people forgot, or simply just don’t care.
but thats just my two cents
