The situation in Dagestan is continuing to heat up (See BBC News | Europe | Dagestan rebels under fire ). John Ball is an American educator currently living in Russia. You will find his comments below on Dagestan most enlightening. 

Commentary on Dagestan by Dr. John Ball

Dagestan was never a member state of the USSR.  It was a portion of the Russian Soviet Republic; that is, it was not distinct from the Russian part of the USSR - in contrast to Ukraine or Belarus or Kazakstan, etc.    That's why Dagestan, officially, remained part of Russia after the USSR dissolved, instead of separating like Ukraine or Georgia etc.

Prior to the Soviet era (1917) Dagestan was part of Russia.
Dagestan, and other regions in the Caucases (including Armenia and Georgia) requested union with Russia, back in Tsarist days, as a preferable alternative to being ruled by Turks. This makes it all the more ironic that many of them now desire separation.

Also, it is arguable whether the rebels in Dagestan actually want an"Islamic" state.  In name they do, but in substance, it's questionable whether they are actually promoting true Islam.  That is, many practices of the "Moslem" rebels in Chechnya (and now Dagestan) violate Islamic law.  These practices include torture (including crucifixion) of captured Russian soldiers, and injury of civilians - the Islamic law of war prohibits injuring noncombatants, or severe treatment of those who have surrendered.

Make careful note that the practices of certain so-called "Muslims" in the Caucases, do not represent the typical conduct of most Muslims in the area.

Therefore there is an open question as to whether the rebels in the Caucases are sincere Muslims, rather than perhaps parties who have political aims which they justify under the - perhaps abused - name of Islam.

In sum, within the one billion or so strong community of Muslims, there would be strong disagreement as to whether the practices of Chechnyan or Dagestani rebels represents true Islam, whose principal aim is Peace.

Finally, a large portion of the population of Dagestan is ethnically
and religiously Russian.  If Dagestan becomes an independent, let alone nominally "Islamic" state, large numbers of Russians who have lived there for years in peace, might be placed in great peril.

Therefore I advise caution in assuming that the troubles there are essentially religious, or that a simple line can be drawn between Dagestan and Russia.Rather I would simply state that war has broken out in the region, and simply urge prayers for Peace, in the name of the one God of the Russians and Muslims.