After several days of holding out, Pervez Musharraf announced he would be resigning as President of Pakistan instead of facing impeachment. The move was not a big surprise as the media had been reporting that many people in the upper circles of Pakistani politics, including some in the army, had been candidly encouraging Musharraf to resign.
This will undoubtely change the direction of Pakistani politics. The real question is though, how will it effect American foreign policy towards the nation.
Currently, American forces have been battling Taliban and Al Qaeda forces on the Afghanistan and Pakistan border. A new regime, might allow the United States to pursue those terrorist in a more aggresive manor than has previously been allowed. American forces have rarely crossed the border into Pakistan and occasionally rely on UAVs to carry out strikes against Taliban who ride the border fence. New tactics could include more cross border raids and possible forward operating bases/points to be established on the border or in Pakistan itself.
On the other hand, a new regime could do the unexpected and hamper the United States ability to chase the terrorists into their hideouts. Musharraf was able to keep the Taliban in check by only allowing them to operate near the border region. Hopefully the newly elected government led by Prime Minister Yousuf Gilani will be able to continue this trend. An unfortunate event will be for the Taliban to assume control of more land and continue their extremist ways. This route seems less likely, but is still possible. Today President Bush acknowledged that Pakistani Prime Minister Yousuf Gilani will continue to do his part to battle terrorism in his country.
Either way, with a new government being established in Pakistan and an election coming up this fall here at home, the future of American foreign policy in the volatile region will change and be important for years to come.

So long Musharraf!