The payload this time was simulated; just a big chunk of metal to prove that their rockets can indeed successfully launch something into orbit. I frankly didn't doubt this; all of the problems they have had are minor. However, as I said before, minor problems + space = spectacular destruction. This was probably making the investors a bit skittish, but things are good now.
Though the launch was delayed by the better part of a week, everything went off flawlessly. The Falcon 1 launched, the first stage separated, the second stage fired, was turned off, and then was fired a second time later on just to prove they could do it. See for yourself; here's the full 40 minute launch video (credit SpaceX).
This bodes well for their likely launch of the Sundancer space hotel prototype in two years.