Here is a quote from the link that PS have suggested, it was interesting to read.....
Succeeding a Warlord
Muhammad left no clear succession plan for his empire; an oversight which has to this day led to factions within Islam as to who are the true Muslims. From 632 to 661, four Caliphs ruled from Medina, elected by the closest followers of the prophet. (Caliph means ?a successor?, but it became the title of the person who became the religious and political leader after Muhammad's death.)
There was a core group of believers who along with Muhammad came to be known as the salafiya (the righteous companions). They became the first four caliphs - Abu Bakr, Umar, Uthman and Ali ibn Abu Talib.
When Muhammad died, a struggle developed among his followers as to who should assume leadership of the ummah. A group of followers that ultimately became Sunni believed the position should be by consensus from prominent Muslim leaders. The group that believed the succession should be based in familial ties ultimately became Shi?ite. As Ali was the only blood relation to Muhammad this group pressed for Ali?s claim as Caliph.
However, Umar petitioned the believers to select Abu Bakr as successor to the prophet and he was duly appointed the first Caliph. He sent Khalid to subdue the tribes who rebelled immediately after the death of Muhammad. United by a military force of 18,000, they advanced on Palestine and Syria in 634 and defeated the Byzantine armies at Yarmouk River in 636. Forty thousand more Muslims marched to conquer North Africa. At home he used Umar to force Ali and his followers to submit to his caliphate and denied Ali's family the inheritance of Muhammad's property and land.
With the death of Abu Bakr after two years as Caliph, Umar was elected the second Caliph. He was the father of Hafsa, Muhammad's fourth wife. Under his rule the Muslim empire expanded throughout Egypt, Syria and into the Persian Empire and achieved the surrender of Jerusalem to the Muslims. Umar was stabbed to death by a fellow Muslim in the Medina Mosque in 646.
Again Ali was bypassed as Caliph when Uthman ibn Affan was selected. He was from the Ummayid clan and was married to Ruqqayah and Um Kuthulm, two of Muhammad's daughters by Kadijja. Under his rule the empire expanded rapidly with him appointing family members to military and government positions to maintain control. Also he spearheaded the revision of the Qur?an and ordered all previous copies to be burnt. He too was murdered when 80 years old while reading the Qur?an at his palace.
When Ali, the first cousin of Muhammad, husband of Muhammad?s daughter, Fatima, and one of the first Muslims, was finally appointed in 656, the governor of Syria, Muawiya, refused to recognize him as Caliph. This resulted in a long drawn out civil war between the two parties. Trouble also brewed with Aisha who had hoped that Zubayr would become caliph after Uthman. She incited the citizens against Ali and was able to summon support from various corners of the empire. Aisha now took command of an army opposed to Ali.
Ali was forced to abandon his campaign against Muawiya, deciding instead, to use his small force against Aisha. The two armies met outside Basra with Aisha mounting her camel (Battle of Camel). Ali ordered his men not to take offensive action unless the enemy reached their lines. Wherever the camel of Aisha stood, there the battle was waged most fiercely. As long as that animal was standing, Ali realized, the battle would continue. He therefore ordered that the legs of the camel be cut. Within a very short time after bringing down the animal, the bugle sounded to signal the end of the battle. Ali allowed Aisha to return to her home advising her that it was not becoming of the prophet?s wife to be involved in squabbles within the ummah.
The caliphate of Ali came to an end in 661 when he was assassinated by one of his own followers.
Previously, Ali in the interest of conciliation between the various contentious groups bided his time until he was finally caliph. However upon his assassination the major split in Islam took roots.
With the death of Ali came the end of the period known as Rashidun (The Rightly Guided Caliphs). These were the Caliphs who were companions of the prophet and hence considered to be guided properly in the faith.
The governor of Syria, Muawiyah, a cousin of Uthman (the third caliph), insisted on the return of the caliphate to the Ummayid clan. Ali's son, Hassan agreed to the request under military pressure. With Hassan's death under suspicious circumstances, followed shortly after by Muawiyah death, Yazid, son of Muawiyah was appointed the next caliph.
Hassan's brother, Hussein, son of Fatima and hence grandson of the prophet, raised an army to march against the Ummayad?s who Ali?s descendants called the Usurper's dynasty.
On October 10th 680 (Muharram - first month of the Islamic calendar.), Hussein and his companions fought against a large army of perhaps 4,000 men under the command of Umar ibn Sa'd. Hussein and all of his men were killed. The bodies of the dead, including that of Hussein were then mutilated.
Today, the death of Hussein ibn Ali is commemorated by Shi?ite Muslims during every Muharram.The bloody struggle for power and ideology within Islam continues unabated since the death of Muhammad. In addition to the collective goal of ridding the planet of Dar-ul-Harb, the non-believing world, Islam in this technologically advanced age poses a distinct threat to humanity when swords can be easily swapped for weapons not yet imagined in the minds of Muhammad and his companions.