I couldn't give you a comprehensive summary of how the media is dealing with it across the board, but from what I have seen the BBC line, for example, is fairly neutral and seems generally to be in favour of the "softly, softly" approach on the basis that to have gone in hard, or for the sailors to have resisted, would have been a bad move.
If the talkback on the BBC website is anything to go by, there's interestingly a signifcant voice advocating a "hawkish" response (a curiously high number advocating one policy in particular - solving two problems at once by decommissioning our Trident nuclear arsenal (a recent hot topic) by detonating them over Tehran. Of course, there are also those who are taking a line that we deserved it for being there in the first place. I guess I am surprised at the vehemence and popularity of the more "hawkish" view, as well as the lack of a middle ground in favour of a patient, diplomatic solution. I guess there's no underestimating the strength of the public's sympathy for "our boys" (and girls) when they get into trouble. File it alongside the fascination with the royal family and warm beer.
The press conference today seemed fairly convincing - essentially producing documentary and photographic evidence that the sailors were in Iraqi waters, in case anyone hasn't seen the coverage - but then so did Powell's presentation to the UN.
It seems pretty obvious to me that this hasn't got much to do with whether a limited force in rubber dinghies was or was not in whose waters. It seems a pretty obvious "tit for tat" move by the Iranian government in response to the arrest of their diplomats the other day, and a fairly clever, tactical "fuck you" in general to the bad press they have been getting over here about their alleged involvement in Iraq.
Given the cluster-fuck that was the situation in Lebanon last summer, the ongoing mess that is Iraq, and the general public attitude towards British military engagement in the Middle East, the options available to HM Goverment are significantly limited right now and no doubt the Iranians responsible for handling this situation are making full use of that fact.