The Facts about evolution:
If we try and consult the Divine information through the last Testament Qur'an regarding Evolution, what we find are certain verses which mention that there was once a time when man was nothing; the fact that man is created from water and dust is mentioned quite often and, elsewhere, it states that man was created from ''rotting mud''.
Looking at all this information it can be deduced that the process of human creation initiated long before the time when Adam pbuh and Eve pbuh came into being, fully formed with all their organs and organic systems (including the Reproductive system so that they could start reproducing).
Before that stage, there seems to have been stages in their growth which have not been detailed in Qur’an or the authentic sayings of the Prophets (pbuh) from their revolutionary knowledge; however Qur'an has deetailed the stages of embryonic and foetal development in utero (inside the womb) exactly as they are proved today microscopically. Hence one may conclude that these stages took place in 'rotten mud' before Adam and Eve(peace be upon them) reached the maturity as the first fully formed humans and from there on the similar process continued through sperms and ova and inside the human body(in vivo rather than in vitro).
From the study of science we can assume that those embryonic stages could be something like we see in IVF(in vitro fertilization/test tube babies).
Therefore, if Islam does accept any kind of revolutionary theory, so far what we have understood it looks like it is not more than this and it is certainly nothing like being monkeys or other species. However as the doors of research are open and this is one of the opinions. Besides, Qur'an does not specifically say yes or no to the theories like Darwin's.
We must however keep this in mind that Qur'an or other Divine books are revelationary for human guidance in all aspects of life and we cannot expect them to give details on specific subjects. One certainly find very important and factual hints like the ones on Astronomy e.g. about the shape of the earth, the fact that the planets are moving in their orbits and that even the sun is not stationary etc. Similarly it gives hints about human Biology and Embryology, so far none of which has been proven wrong as confirmed by many and the famous embryologist Kieth Moore.(click on google)
I happened to speak to an Embryologist expert in congenital abnormalities in one of our Fetal medicine and congenital abnormalities conferences at the Royal college of Obstetricians and Gynaecologists London regarding the concept of evolution which describes the human evolution from other animal forms and he said that clearly we are facing big gaps in Darwin's theory of evolution because if genetic mutation takes place to such an extent to change from a reptile to a bird or a monkey to a human, the species will either die off completely or will become a very abnormal form of its own kind. It would certainly not become another species after undergoing a genetic mutation.
Hence just like Islam is a religion of nature and common sense, it has a clear outlook regarding human creation.
See comments in Guardian: http://commentisfree.guardian.co.uk/inayat_bunglawala/2007/10/talking_about_evolution.html