In the end, I never finished the story of the South Ossetia presidential election crisis. Anyway, the Central Asia-Caucasus Analysis magazine has a nice report that outlines the outcome and provides some useful analysis of the situation.
Basically, the stand-off between President Kokoity and the de facto winner of the presidential election, Alla Dzhioyeva, has ended. They agreed a deal whereby the former would stand down and the de jure winner, Anatoly Bibilov, would not take up office. In return, Dzhioyeva would agree to end her protest against the election. In addition, she would be allowed to stand at the re-run of the election in March. Previously, the Constitutional Council had ruled that she was ineligible.
The deal seems to have been implemented. So, the next stage in the process is the re-run of the election.