For whoever was saying that NK would win a war because of the size of their military:
"The equipment is a mixture of World War II vintage vehicles and small arms, widely proliferated Cold War technology, and more modern Soviet weapons. According to official North Korean media, planned military expenditures for 2009 are 15.8% of GD" Wikipedia
With WWII tanks, the South Koreans and United States basically don't have to worry about armor - a LAW has a good chance of taking one out.
As for China, yes, their remaining neutral, but if the bulk of Western nations descended on North Korea, I rather doubt they would side with NK. China isn't stupid, and although they might POSSIBLY be able to win a war of attrition with the US, that is severely in question. No, China would do the pragmatic thing and either remain strictly neutral, or declare war on NK as well.
That being said, any such war would be a tremendous waste of life, and resources.