On Friday night (Saturday morning in Beijing) Phelps beat Cavic by .01 of a second. Lots of people seriously doubt this. I seem to be one of the few people who believes Phelps had won.
However, there is PROOF that Phelps had won the race. This video shows frame by frame the end of the race and clearly shows Phelps touched first.
http://www.youtube.com/watch?v=8ODfoxiy9Vc
If you don't think its good quality, the same photos are on sports illustrated websites, such as here: http://sportsillustrated.cnn.com/multimedia/photo_gallery/0808/oly.phelps.sequence/content.5.html
You can watch an entire slide show there that clearly shows Phelps touched first. The officials also slowed down an underwater camera to 1/10,000 of a second and it clearly showed Phelps had touched first. The Serbian officials and swim coach saw that and even admitted that Phelps had won.
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