Clinton gained momentum in the campaign's last moments, taking about half of voters who made up their mind in the last three days. But four of five voters made up their minds earlier, and they overwhelmingly supported Obama.
For the first time in recent memory, the state's primary - held the same day as primaries in Texas, Ohio and Rhode Island - was expected to play a role in the selection of the Democratic candidate.
"Vermont used to be a beauty pageant," said Obama voter John Sherman, 46, of Hartford. "It used to be decided by the time it got here but now, tiny little Vermont has a say in the outcome."
Thousands of new voter registrations were received just before last week's deadline and Secretary of State Deb Markowitz said she hoped turnout would exceed the state's all-time primary record of 39 percent, set in 1980.
Vermont has about 400,000 registered voters.
"I'm hoping that we beat the 39 percent number, it'd be great if we got up to 50 percent," Markowitz.
The Iraq war loomed large for voters in the Democratic primary, according to exit polls taken for The Associated Press and television networks.
Given a choice of the war, economy and health care, about four in 10 voters said the war was the most important issue facing the country. About the same amount that said the economy was most important.
Vermont is the only state so far this year to rate the war so high. In every other Democratic primary, more voters have said the economy was the important issue facing the country, the exit polls said.
Vermont voters continued their liberal and independent streaks. About two-thirds of voters in the Democratic primary described themselves as liberal; about two in five identified themselves as independents, the polls said.
Clinton and Obama supporters campaigned heavily in Vermont in the weeks leading up to the primary, airing television and radio ads and mounting get-out-the-vote drives in hopes of winning the 15 convention delegates at stake Tuesday. Vermont has another eight super delegates.
In Hartford, Paul Keane, 63, complained to the Board of Civil Authority after he cast his ballot because he was required to declare a party affiliation in order to vote in the primary.
"I was shocked. This is Vermont. It's really so against everything Vermont believes in in terms of privacy and independence," said Keane, who wouldn't reveal his primary choice. "I couldn't believe I was being asked that in public in front of everybody. I wasn't allowed to just be an independent. It was like I was in New York City."
Vermont's primary is open to all, but voters must choose one ballot over the other and the choice is recorded.
Markowitz said complaints such as Keane's were common during presidential primaries.
"Every four years we do get calls from irate voters not accustomed to having their choices of a Democrat or Republican ballot made public," Markowitz said.
-- The Associated Press and projo.com staff writer Michael P. McKinney