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Mohammed Mossadegh, the former elected leader of Iran, was a communist.
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Not at all. He wanted to end the British exploitation of Iranian oil and nationalize the industry so as to be run by the Iranians themselves. The Brits forced an embargo on Iranian oil and when that didn't work tried to make the Americans involved in the first place, and what best way than to spread the rumour that Iran's leader is moving towards the Soviet influence. Then the Americans started accusing Mossadegh of being harmful to its people, in an efford to turn the Iranian public and the international community against him. Finally, the US and UK forces led the coup backed by pro-monarchy elements and Mossadegh was left stranded. He was arrested and the former Shakh was rushed back to the country. ( he left the country on his own, afraid that Mossadegh would prevail the coup
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For more information, you can look in any historical book/encynclopedia available.
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Though the West may have been implicit in Iranian politics back then, what is happening now has nothing to do with them. Iran is so pro-West that if Bush had in fact invaded Iran rather Iraq, the troops would have actually been greeted as liberators.
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This is perhaps what the West wants to believe then. Maybe that's what they thought of Iraq too. It makes no sense whatsoever though.