The earthquake was bad - Tsunami was worse and to top everything off, A few reactors at the nuclear power plants at Fukushima were damaged by the tsunami which released radioactive materials into the air.
Due to the nuclear plants being out of action, not enough electricity is being generated so the government put into effect rolling blackouts in the Kanto region (Tokyo is in Kanto). Most of Eastern Japan is now saving electricity as much as possible and thanks to this, the rolling blackouts were put off for a few days. The interesting thing was that many folks complained that the blackouts didn't happen as scheduled!
West Japan was hardly affected by the quake and are not subject to any scheduled blackouts. The reason why they cant just channel electricity from West to East Japan is because both sides run on different electric frequencies. East is 50Hz while West is 60Hz.
The reason why things ended up like this is because during the Meiji period, Tokyo imported its power generators from Germany while Osaka got its generators from the US.
Many electrical appliances would just break if the wrong frequency of electricity was used.
Radiation levels around Japan have been higher than normal and they've found traces in spinach and milk. The levels however are not high enough to cause damage - one of the statistics I saw was that unless one drunk more than 50,000 cups of milk then one would be fine. This chart should put everything into perspective and this article at the BBC may help folks who are still worried.