How are the occidental powers going to cope with the situation??

The Russian army violated the boarders of Georgia on Friday, as, officially, a retaliation against the brutal and criminal military policy that the georgian government use to keep Ossetia under control. It has actually been a while since Ossetia declared their independance from Georgia, and the situation has been really crappy for all this time. Other conflicts were keeping the UN, the US and the european union busy. And now it all hits the fan,
Russia attacks Georgia, whose army, to help out their good old american friends, is almost entirely positionned in Irak, the american friends (who seem pretty interested in the old USSR "satellites" cf the whole nuclear shield story in Ukraine) are now helping the Georgian army to get out of Irak to put them back home, where they are being destroyed by a strong russian contingent, and that does not please Putin either.
Putin started a maritime embargo and warned that any shipped that would get in the security zone in the black sea would be destroyed...
The goal is clearly to take over the country, and they are on a good track since they managed to take control of 50% of the country in 3 days, according to the news centers (reliable?), and to obtain control of the gas pipe that crosses the country.
So now what?
Show the same rigidity as with the negotiations with Iran? That would be a dangerous game. Some of Russia's supporters would find there a great opportunity to let loose.
Pass a resolution? Yeah, right Russia wont use the power of veto...
Send Bush as messenger for peace and have him declare that the military operations of Russia are inacceptable was not smart, they should leave that to Khouchner, it's a matter of credibility among other things. No one can predict what's going to happen, an international military conflict? Russia taking over more countries and progressively rebuilding its geopolitical power?
The international community has lots of regional conflicts like this one to expect, that's for sure.