lenfromkits said:
Thanks. I see. What was the primary reason that led to the idea of 'expanding space' like the balloon analogy you gave?
Well, the primary reason that led to the original idea was, I believe, the mathematical simplicity of the idea: there's nothing easier to consider, after all, than a universe that is the same everywhere (homogeneous) and in every direction (isotropic). So far as I know, there wasn't any experimental reason at the time the idea was first proposed to think this idea was actually true. It was just a neat hypothesis.
At the time, there was a raging debate within the astronomy community as to whether so-called "spiral nebulae" were just weird-looking nebulae within our own galaxy, or much larger, far-away objects (i.e. galaxies). Edwin Hubble, a couple of years after the proposal by Lemaitre of the homogeneous, isotropic universe made some distance measurements to a number of these "spiral nebulae" and found that not only were they vastly further than anything that could be within our own galaxy, but they had a redshift/distance relationship that Lemaitre's hypothesis predicted!
Since that time, astrophysicists/cosmologists have been working hard at uncovering other predictions of this idea. When one looks at the early times of the theory, for instance, one finds that it would once have been hot and dense enough to be a plasma. Since the universe was largely transparent since then, we should see radiation from the transition of the universe from an (opaque) plasma to a (transparent) gas, and this radiation should have nearly a perfect black body spectrum. Which it does (from the FIRAS instrument on the COBE satellite):
http://en.wikipedia.org/wiki/File:Firas_spectrum.jpg
All of the error bars in the above figure are vastly, vastly smaller than the width of the line.
Shortly after the prediction of the CMB, nuclear physicists looked a bit earlier, and considered how atoms would condense out of the quark-gluon plasma: at high enough temperatures, protons and neutrons would not even exist, but would just be a mass of quarks and gluons. As these condensed, they would form the atoms we know and love today. When physicists worked through the math, based upon what we know of nuclear physics from terrestrial experiments, they found that these results would basically produce a universe that starts with roughly 75% hydrogen, 25% helium, and trace elements of everything else. And when we go out and look for the primordial abundances of these elements, this is precisely what we find.
Anyway, there's more to the story. You can read up an excellent essay on why we so strongly believe the Big Bang to be true here:
http://www.talkorigins.org/faqs/astronomy/bigbang.html