Fundamentals of Politics Challenge Iranian Leader

But underneath the veneer of normality, Iranians are watching as their controversial president settles into office -- and their country hardens under his fundamentalist leadership.

In his first five months in power, Ahmadinejad has carved an image of himself as a religious extremist and political radical. To many in the most conservative circles, this is a welcome change. But in Tehran's usually hectic bazaar, merchants complain of stagnant business. Inside homes, families wonder whether they need to brace for stiffer economic sanctions or international isolation.

To both insiders and outsiders, the political face of Iran seems to have drastically changed. Gone is the well-groomed, rosy-cheeked reformist President Mohammad Khatami, who coined the phrase "dialogue of civilizations." Ahmadinejad, draped in a Palestinian kaffiyeh, the scarf that he has appropriated to signal his struggle against perceived injustice, has stirred international ire with virulent anti-Israel rhetoric. Meanwhile, his habit of immersing politics in sacred Islamic tradition has chafed critics within Iran.

"He is not qualified to be the president of Iran. His words so far leave no doubt to his inadequacy to the job," fretted a 38-year-old graphic designer who identified herself only as Shahnaz B., expressing a sentiment common among Iranians these days. "The U.S. and Israel will only take advantage of his stances to further their own agendas on Iran."

At home, Ahmadinejad is known for his populist ways. As mayor of Tehran, he shunned the large office accorded him in favor of a smaller side office and remained in his small apartment in a working-class neighborhood instead of taking the luxurious mayoral house on the capital's north side.

One of his popular programs involved the distribution of funds for young couples to get married. Driving around in his 1977 Peugeot, he maintained the image of a humble man -- the main selling point of his presidential campaign, in which he promised to redistribute oil wealth.