This was predictable. Is it all that unreasonable that country "A" lift its sanctions on country "B" (or some of them) for relations to develop?

Everyone is playing the public diplomacy game here. That goes for both Obama and Khameni. Iran needs to get used to the idea of dealing with the great Satan and we need to get used to the idea of lifting a sanction or two for things to proceed.

This is just round one of the public diplomacy ballet. Round two consists of the American reply, "let the US and Iran discuss our mutual extra-territorial interests regarding certain nations whose shores are on the Mediterranean."

And so it goes.

I agree with papicek.

Also isn't "...kicking him in the teeth." an overly dramatic choice of words for a cool reception to his video?

"Kicking him in the teeth" is over-dramatic.

Here's what "change" means for Obama: Whereas Bush insisted that Iran give up its enrichment program before any talks begin, Obama appears willing to come to the table first... and then insist Iran give up its enrichment program.

Is Khamanei's rhetoric so surprising when Iranian schoolkids are taught about the US-engineered coup of 1953 in the same way American schoolkids are taught about oppressive British taxes in the 1760s and 70s?

Too, memories are long in that part of the world. 1953 to us is ancient history. To them, it's yesterday.

I think it's a good idea to talk, but given the latest development - the de facto murder of a blogger in Evin prison - how dare these idiots posture? We've opened up the potential for talks. Given the fact the leaders of Iran are torturers, all the way down to the bone, enough is enough. We have other things to do, other relationships to work on.

On Omid's death: http://committeetoprotectbloggers.org/2009/03/18/omir-reza-misayafi-has-died-in-prison/

The response by the Iranian government was entirely predictable. The power of Khamanei and the undemocratic old guard of the Revolution is based in no small part on their ability to blame foreign enemies for problems at home. To the extent that President Obama does not play into the caricature of the Great Satan -- the way that Bush did, with his "Axis of Evil" speech -- Khamenei and his colleagues are obliged to play damage control.

Khamenei needn't lose sleep however. The Netanyahu government in Israel, with Avigdor Lieberman as Foreign Secretary, will balance out the restoration of sane leadership in the United States. Expect to hear, as in the response to Obama's message, a lot more harping on the United States' ties to Israel.

Precedent Obama's thinking so nice i agree with him. I think its will bring benefit our people world people.

I agree with papicek. Any real change in the status quo on relations between Iran and the U.S. will most likely initially be a delicate dance of ‘who shows what cards first’. I think old grievances and the redressing of past actions taken, justified or not, will be vetted and repudiated.
If Pres. Obama and Khameni can find a way ahead that maintains the populace support each needs within their own country AND mend old grievances, I think that will be a good and have positive impacts on the broader goal Pres. Obama has for U.S. relations in the Middle East.
Interesting times, but it will be a ‘wait and see’ for some time.

Obama's room to manoeuvre is seriously limited by AIPAC and the pro-Israelu lobby which sees any potential rapprochement between the US and Iran as a challenge to Israel's primacy in US-Mideast affairs. Look for the Israelis to play spoiler.

I don't think it is unreasonable at all for people to ask Obama to deliver more than pretty words, whether for foreign or domestic policies.