We did make gains. The Liberals are the largest party in the house, but they don't have a majority. The party that they had hoped would have enough seats to create a combined majority (NDP) fell short as well.
The grits have 135 seats, the Conservatives 99, the Bloc (Quebec separatists) 54, the NDP 19 (supposedly socialists, but made up of agrarian and labour particularists as well) and one independent (a conservative who lost the nomination in his riding, won as an independent defeating the recognized conservative candidate).
This means the Liberals will need the support of the Conservatives, the Bloc or two opposition parties to get anything passed. They've announced that they plan to govern in a minority position, so if the stars are right they could be defeated at any time (forcing another election). Minority governments in this country have a history of seldomly lasting more than 18 months, and often less.
Being in this precarious position its unlikely that they'll do anything to force the issue and polarize the house. As gun owners we're probably safe from any new form of oppression, but its unlikely they'll repeal anything either.