Since it's been aluded to in this thread but never actually stated: the alledged reason for the protests isn't simply because they lost the election. Rather, there have been very serious allegations of election fraud. Pre-vote polls suggested that Mousavi had a lead of about 20% in the polls (meaning that the polling numbers suggested a 60-40 victory for Mousavi). However, the results of the election were almost a polar opposite of the original polls. In addition, Mousavi didn't even win most of his strongholds of power: it was assumed that he would carry a large advantage in Tehran, which he lost. He didn't even win his own home town. Furthermore, this was an election where a vast majority of the ballots were paper ballots, yet the results were announced merely an hour after the polls closed. It seems very unlikely that an accurate count could have taken place in that time, even if they were doing some counting as the ballots came in. The protests are less because they lost the election and much more because they feel that the results of the election were tampered with. The Supreme Council is ostensibly recounting the votes, but they back Ahmadinejad, so I would be shocked if most of the protesters accepted anything they say.
And for people who are trying to compare this potential election fraud to the alleged fraud in 2000 in America, you've got nothing to stand on. The margin of victory in Florida was so close that any reasonable confidence interval to identify the "true" percentage of the vote is going to include percentages that would have given a win to either Bush or Gore. And anyone who thinks that both Republicans and Democrats in Florida weren't doing anything they could to influence that election are naive. I'm sure they both were doing anything they could.
(And for reference, since I'm sure people will be trying to ascertain where I stand politically from this post, I'm a libertarian. Take what you will from there.)
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