Dems - Best Outcome
1. Edwards
2. Obama
3. Clinton
(I would rank Clinton much lower, but no one else has a chance at placing in the top 3)
This result would lead to a complete and utter free-for-all on the Democratic side (as if it isn't already). Clinton would be damaged, but all 3 would still be very much in the running.
Dems - Worst Outcome
1. Clinton
2. Edwards
3. Obama
This scenario would pretty much seal a Clinton victory. Edwards doesn't have much of a chance unless he get first, and Obama could still have a slim chance by placing second (if he then goes on to pull off NH). Placing third would kill his candidacy.
GOP - Best Outcome
1. Romney
2. Huckabee
Placing first in Iowa would give Romney a significant boost towards getting the Republican nod. We would so cream him in the general.
GOP - Worst Outcome
1. Huckabee
2. Romney
A Huckabee win in Iowa could really open things up for McCain in NH, which personally scares me shitless (and would hurt Obama due to the independents swinging over).