Britain's Rebecca Adlington won Britain's second gold medal in the women's 400m freestyle.
Jo Jackson (GB) claimed the bronze medal.
Adlington is the first British female Olympic swimming champion in 48 years.
Adlington is 19 years old and from Mansfield. She beat Katie Hoff of the United States by just seven 100ths of a second.
Jackson also came from fourth place in a dramatic finish to win bronze.
The British pair's timing was amazing. They reached 100m and 200m in sixth and eighth place respectively. Adlington reached 300m in fifth and Jackson just ahead in fourth.
So an amazing final 100m saw Adlington storm through from 5th to claim victory by a fingertip in a perfectly timed lunge.
The arrest of Shadow immigration minister Damian Green has caused cross-party anger. 
UK Chancellor of the Exchequer Alistair Darling has announced a cut in the UK VAT tax rate from 17.5% to 15% until the end of 2009.
