Fifty years ago today, the Soviet Union launched the world's first artificial satellite, Sputnik I, into orbit. This action heightened the tensions of the Cold War and launched the technological space race betweeen the two countries. The United States won the first incarnation of that race by putting six two-man crews on the surface of the moon and returning them to the earth. Since then, the Soviets (now Russians) have had many more successes with orbital space stations than the US. However, the societal implications of the space race (including the creation of NASA) cannot be underestimated. Time has a "Top 50 highs and lows" in the space race, which provides an interesting overview of space events.
A recent interview with Boris Chertok, aide to the father of Soviet space flight Sergei Korolov, brings up some interesting points, including the claim that the whole exercise was put together at the last minute. He also points out that the "object" that people on the ground could see wasn't Sputnik I at all, but its upper booster stage, which was in roughly the same orbit.
The Houston Chronicle has an interesting article about the buildup to the space race. It points out that the US under President Eisenhower had been sending bombers into Soviet air space for years, and the ICBM buildup that led to the Sputnik launch was started to counter that threat.