I was in London yesterday. It is still anticipated by most that there will be a coalition government between the Conservatives and the Liberal Democrats, especially as the leader of Labor, Gordon Brown, ended up threatening Greeg the head of the Liberal Democrats on the phone over the past few days.
http://news.bbc.co.uk/2/hi/uk_news/politics/election_2010/default.stm

Party | Predicted seats | Seats | Change | Vote % |
---|---|---|---|---|
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Conservative | 306 | +97 | 36.1 |
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Labour | 258 | -91 | 29.0 |
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Liberal Democrat | 57 | -5 | 23.0 |
Most people were nto happy with the choice of either the conservatives or the Liberal Democrats–because neither has had much governing experience. However, Conseratives going it alone is still an option if Cameron of the Conservatives wants to try and build a minority government, the first in the UK in decades.
I would say that the Liberal democrats should try their best to build a government with the caveate that the electoral system be changed significantly as part of the deal. Many people in the UK are not happy with the first past the post system–although this week for the first time in the UK, the Green party won its first seat under such a system.
Here is an election map that came out today.
Some other links to consider are:
http://www.electoral-reform.org.uk/
http://www.electoral-reform.org.uk/votingsystems/systems2.htm