Along with explanations here, I'm interested in any articles or books that explain what happened in Hungary in 1956. Was this an attempt at a capitalist change or was it a proletarian revolution that seeked to abolish what was seen as the bureaucratic class and state capitalism of Hungary and replace it with genuine socialism? The West and the US jumped in support of it, but I have heard that workers' councils were formed during the revolution and that many of the revolution's leaders were socialists/communists.
The Revolution was broadly supported by the Hungarian population. It was more nationalist than either socialist or capitalist. It was more anti tyranny and pro liberty than either socialist or capitalist.
The students who started the revolution published a list of demands. These demands included: free elections for officials by secret ballot, the end of central planning of the economy, a return to traditional Hungarian symbols (army uniforms for example). More open and transparent courts and judicial decisions.
http://en.wikipedia.org/wiki/Demands_of_Hungarian_Revolutionaries_of_1956
The revolution (at least in its inception) was more pro-liberty and pro-democracy than either socialist or capitalist. It also had a nationalist element.
You're too focused on ideology. Think more in realpolitik terms.
The revolution was indeed headed by communist reformers and the West was willing to overlook the fact that they were communists because of their opposition to the Soviet occupation. The great powers didn't care about fancy Marxist ideals or whether Hungary was moving closer to True Socialism(tm). They cared about whether Hungary would continue to be an ally of the Soviet Union.