Here is what I consider a reasonable interpretation of the situation.

According to this article, former President Zelaya got to the border with Nicaragua but no further.
Police in riot gear waited a short distance over the border and a helicopter flew overhead as Zelaya approached.

The ousted president, a logging magnate who draws support from unions and leftists, called his family from the border, saying, “I am on the Honduran side.” His wife traveled with supporters from the capital, Tegucigalpa, but did not get close.

Several hundred Hondurans trying to reach the border to greet him were kept several miles (km) back near the coffee town of El Paraiso. Some threw rocks, and troops tried to disperse them with teargas and sporadic shots in the air.

A Reuters photographer saw one police officer wounded in the head by a rock.

Triumphantly carrying a Honduran flag to the cheers of supporters below, about 150 people from Zelaya’s home department of Olancho arrived on the Nicaraguan side of the border some hours after Zelaya, having flaunted checkpoints and curfews by driving over mountains and hiking the last 8 miles though dirt roads, farms and trails.

Discussions in Costa Rica are apparently continuing to some extent, and Honduran officials are apparently considering various proposals advanced by Costa Rican President/Mediator Arias.

Former Honduran President Zelaya crossed into Honduras from Nicaragua today. The reactions from the OAS and from Secretary Clinton were less than enthusiastic:

Washington and the Organization of American States have asked Zelaya to be patient and not return on his own, fearing it could plunge the country into chaos.

“President Zelaya’s effort to reach the border is reckless,” Clinton said in Washington.

She said it would not help restore democratic and constitutional order in Honduras.

According to the Honduran military, there are concerns that Zelaya’s own followers may seek to make a martyr of him.

Zelaya said he hoped soldiers at the border would stand down when they see him. He called on supporters to meet him at the border, although he has not yet said exactly where he plan to cross into Honduras.

“I think the guns will be lowered when they see their people and their president,” Zelaya said at a news conference shortly before leaving.

Should Zelaya return, he is quite likely to be arrested for the crimes he is said to have committed.

Should the new Government accept it, chaos would likely result in Honduras, Chavez would have won and the rule of law would have lost.

10:41 a.m. – BOGOTA, Colombia. (EFE).- El canciller del nuevo Gobierno hondureño, Carlos López, se reunió el pasado lunes en Bogotá con el presidente colombiano, Álvaro Uribe, informó hoy la emisora La FM . (EFE) .- The foreign minister of the new Government of Honduras, Carlos Lopez, met last Monday in Bogota with Colombian President Álvaro Uribe, announced today the FM transmitter.

López le confirmó a esa emisora la reunión y agregó que Uribe expresó “simpatía” por el Gobierno del presidente Roberto Micheletti, nombrado por el Parlamento para sustituir al mandatario depuesto de Honduras, Manuel Zelaya, el pasado 28 de junio. Lopez confirmed to this radio station, adding that the reunion Uribe expressed “sympathy” with the government of President Roberto Micheletti, appointed by Parliament to replace the deposed president of Honduras, Manuel Zelaya, on June 28.

This expression of “sympathy” from President Uribe is probably the best news for Honduras since the “not legal coup” last month. Uribe had previously spoken tepidly concerning the situation in Honduras. Note also that the article speaks of del nuevo Gobierno hondureño,” not of the “defacto” government.

According to this article, from the same source, talks in Costa Rica have been postponed awaiting a “new proposal” from President/Mediator Arias. President Michelettii has instructed his principal negotiator, Carlos Lopez to “keep working.” As stated in the first linked article, Mr. Lopez is the foreign minister of the new Honduran Government, who had discussions with Colombian President Uribe on 20 July.