Taken from Sky News
What is the background to the conflict?
This is a hangover from the collapse of the Soviet Union when Georgia established itself as an independent state.
South Ossetia sat within the new Georgian territory and there was a bitter war between the two as South Ossetia battled for its own independence.
In the early 1990s the fighting stopped and South Ossetia set up its own government - though it has never been recognised by the international community.
When the current president of Georgia, Mikhail Saakashvili, took control he said he was not prepared to give it up and there has been sporadic fighting since then.
Why now, and why has Russia become involved?
Georgia has accused Russia of arming and financing South Ossetia.
The US-friendly state is trying to become a member of NATO and say the Russians are deliberately trying to disrupt their attempts.
Russia says that if Georgia were successful and became part of NATO, it would be like their own army setting up base in Canada or Mexico.
In the past Russia has said it will not tolerate fighting around its borders or attacks on its citizens. South Ossetia is close to the Russian border and many of its population have Russian passports.
Russia this year also commented on the fact Kosovo declared itself independent.
It said the move set a dangerous international precedent. The argument extends that if Kosovo can do this - and be recognised by the West - why shouldn't other separatist movements?
Why is it significant?
Georgia is an ally of the United States and is of key strategic importance as a gateway to the Middle East for the West.
Relations between the West and Russia have deteriorated significantly and some say we are in the midst of another cold war.
With this in mind, if the Russians were to become fully involved with the conflict, we could see the formation of a material frontier in South Ossetia in the clash between East and West.
Has this got the potential to affect things in the West?
The Baku-Supsa Pipeline runs between Azerbaijan and Turkey through Georgia and is a key provider of energy for the EU and the United States.
Unofficial separatist sources have claimed that if the conflict was protracted they would be prepared to sabotage the pipeline and that would have huge ramifications.
Is this the first real test for President Medvedev?
The lines of power are still blurred between the prime minister (and former president) Vladimir Putin and his successor, Dmitry Medvedev.
That said, Mr Putin is in Beijing and is not set to return to Russia until after the opening ceremony.