Here is some interesting information about Sunni and Shia Muslims:

Understanding The difference

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Christianity is basically divided in two: Catholics and Protestant. Fundamentally they are the same, they believe the same basic "truths", but deep seated differences remain and sometimes cause tension and even worse. Like Christianity, Islam is also divided, also like Christianity there are many small sects but there are two main groups: Shia and Sunni. Islam has more or less always been followed in these two distinct forms and the division stems from a disagreement among Muslims over who was the rightful successor to Muhammad. One group believe that Abu Bakr was the rightful successor to the prophet Muhammad and that Abu bakr was therefore the first caliph, or political leader. The claim stemmed from his close relationship with Muhammad, and the fact that Muhammad had asked Abu Bakr to lead prayers when too ill to do so himself. Those who recognize Abu Bakr and his three immediate successors, called the Four Rightly Guided Caliphs, are referred to as Sunni Muslims, and today almost 90 percent of Muslims worldwide fall into this category. One group of followers, however, refused to accept Abu Bakr. These Rafidi ("Refusers") supported the claim of Ali ibn Abi Talib, Muhammad’s cousin (and son-in-law). The claim is based on a sermon the Prophet had given at Ghadir Khum, in which Muhammad referred to Ali as mawla, which some translate as "master." Ali’s supporter called themselves Shiat Ali (the Party of Ali), though today they are known as simply Shia. Ali did eventually ascend as the fourth caliph. To Sunni, he is the last of the Four Rightly Guided Caliphs. But to Shias, he is the first caliph and, more important, the first Imam - a word Shia Muslims use to refer to the person chosen leader of all the faithful.

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Great - thanks James! Very interesting stuff.