There was good and bad for both sides, really.
Clinton won California, and it looks to be a pretty convincing win at that. No amount of spin can play down the significance of that.
But Obama won a fair number of states like Minnesota, Missouri, and Colorado that make his candidacy still credible.
I'm going to give the edge to Clinton purely due to California, though.
I don't think she will end up winning convincingly. It seems that most of the early returns were just from absentee ballots and not reflective of overall numbers in certain areas. This is demonstrated by the fact that Edwards is currently getting 10% of the vote even though he dropped out a week ago.
He will probably get over 40% of the vote, possibly 45%.