The Army's powerful 1st Armored Division is proclaiming victory over Sheik Muqtada al-Sadr's marauding militia that just a month ago seemed on the verge of conquering southern Iraq.

The Germany-based division defeated the militia with a mix of American firepower and money paid to informants. Officers today say "Operation Iron Saber" will go down in military history books as one of the most important battles in post-Saddam Hussein Iraq.

"I've got to think this was a watershed operation in terms of how to do things as part of a counterinsurgency," said Brig. Gen. Mark Hertling, a West Point graduate and one of two 1st Armored assistant division commanders, in an interview last week as he moved around southern Iraq. "We happened to design a campaign that did very well against this militia."

When the division got word April 8 that Sheik al-Sadr's uprising meant most 1st Armored soldiers would stay and fight, rather than going home as scheduled, it touched off a series of remarkable military maneuvers.

Soldiers, tanks and helicopters at a port in Kuwait reversed course, rushing back inside Iraq to battle the Shi'ite cleric's 10,000-strong army.

Last week, Sheik al-Sadr surrendered. He called on what was left of his men to cease operations and said he may one day seek public office in a democratic Iraq.

Gen. Hertling said Mahdi's Army is defeated, according the Army's doctrinal definition of defeat. A few stragglers might be able to fire a rocket-propelled grenade, he said, but noted: "Do they have the capability of launching any kind of offensive operation? Absolutely not."