What I've learned over the last few hours, reading often conflicting reports, is that the reactor automatically shut down when the earthquake happened.
The control rods automatically go into the core.
However, the core still needs to be cooled with water and there needs to be electricity to run the pumps. Normally this is done off the mains. There are two 'failsafes' to power the pumps. (Diesel generators and battery)
The earthquake destroyed the mains option, so we were left with the Diesel generators. These failed because (I think) the tsunami, or earthquake. We are left with the batteries, but these only run for eight hours.
So water (coolant) isn't circulating and is being boiled off. The outer containment has just exploded off (Steam explosion?) exposing the inner reactor containment.
I don't know how they're going to keep the reactor cool now.