The Labour Party won a decisive victory for the third time in succession. The Conservatives regained forty or fifty of their (formerly) safe seats. The turnout was similar to last time. I have not yet seen all the full results, but the Conservative vote may have risen slightly, although it does not look as if there has been any resurgence of enthusiasm for a Conservative government.
The Iraq war clearly did damage Labour, probably causing many of its usual supporters to either abstain (more likely) or to vote for another party. In most cases, those former/usual Labour voters seem to have voted Lib Dem, although I have not yet seen enough statistics to back this up. This makes sense in a way, because although voters were angry at the war, they knew that Conservatives would have gone to war too.
Personally, I hated the war down to my guts. However, the Labour government, which is probably more respected than it is loved, has four years to tackle the issue of how we will align our foreign policy and our long term monetary policy. Of those who voted, more of them wished to entrust that task to Labour than to the alternative.
The Conservatives will feel that they have won back a lot of ground, but unless they come up with policies which appeal to a larger proportion of the electorate, that could prove a dangerous illusion. The demographics are against them.