Here's the story from the CBC: Paul Martin has tendered his government's resignation and Stephen Harper will be asked to form a new Conservative government some time today. His new administration will be sworn in in a matter of weeks.
Question is who is going to be in the Cabinet. Speculation rages about what will happen with all the Alberta MPs who were elected, and in particular where Stockwell Day, Monte Solberg and Peter MacKay go. Speculation is that MacKay may not get the Deputy Prime Minister slot because of all his gaffes and machinations against the leader, etcetra etcetra. His leadership race is definitely on hold, at least for a while. Of course Stockwell Day is pretty unpopular with all the usual media people who think he's a religious-nut dinosaur, so they all think he's out at foreign affairs. Monte Solberg was finance critic, but other Conservatives such as Jim Flaherty got elected and may be in line for the finance portfolio instead. Solberg is bound to get a major cabinet portfolio, however.
There's also the question of what to do with the ten Quebec MPs the party elected, and also what to do with the many experienced newcomers elected such as Garth Turner, John Baird and Tony Clement. People are grumbling out West already that the West might get shortchanged, but I really don't see that happening. It's an embarrassment of riches for the Conservatives in picking a cabinet.