Well, I always like to look at world events with a geopolitical lens, and from what I see it's fairly East vs. West here. I would have to say that Russia is the winner in this conflict and is not actually being distracted from supporting Iran.
I must agree with Ed that Russia's arms dealings with secessionist rebels was done with purpose. Russia responded very quickly to Georgia's attack, they knew it was coming sooner or later. They definitely overreacted considering South Ossetia is a rebel state, and not part of sovereign Russia. But it was a purposeful overreaction, you don't accidentally charge into another country, grab their crucial geopolitical points, call a ceasefire, and squat.
Putin's appeal to free the Ossetians is indeed similar to the Bush administration's free the Iraqi's, and it's clearly motivated by factors other than the freedom of Ossetians, as they've cut Georgia in two. I have to say that the Russian orchestration of the Georgia attack was done quite a bit better than the American attack on Iraq.
Georgia is very important from a geopolitical standpoint, as it has important ports on the Black Sea, two very important pipelines, and it brings Russia closer to Iran, which may be important in the future. As well, if pro-American Georgia's NATO bid went through, than Russia's defense of Iran would be made much more difficult, and with Ukraine a promised invitation, the Black Sea would be nearly completely surrounded by NATO nations.