The final tally gives Livni's Kadima party 28 seats with Netanyahu's Likud coming in a close second with 27 seats. To become Prime Minister in Isreal, you must be able to form a ruling coalition representing more than half of the 120 seats in the Knesset (Israel's Parliament). Kadima is a moderate left party while Likud is moderate right. Despite Kadima having the most seats, Likud has a much better chance of putting together a ruling coalition. That is because right wing parties took more seats then left wing parties 65 to 55.
Israeli President Shimon Peres must now ask one of them to try to form a ruling coalition. By tradition, the President asks the person leading the party that won the most seats. Given the ideological break down of the seats, for the first time in Israeli history the President might not follow that tradition and ask Netanyahu to try and form a ruling coalition.
By most accounts Avigdor Lieberman's hawkish Yisrael Beiteinu may be the deciding factor. They came in third with 15 seats.
More then 72% of Israel's eligible population voted.
More at http://www.ynetnews.com/articles/0,7340,L-3670896,00.html and http://news.yahoo.com/s/nm/20090212/ts_nm/us_israel_election.