"In 2001, the Argentine economy effectively imploded due to the collapse of the Argentine peso. The Argentine military proved incapable of surviving the negative aftershocks of a then broken policy of defending the peso at all costs. Since then, the military’s annual budget sank becoming a fraction of what it was in the past. Salaries were cut throughout the ranks. The size of the armed forces not only had to be reduced, but in many cases equipment had to be sold on the black market in order for military units to meet their daily expenses. According to Military Technology, the current strength of the Argentine military is about 68,000 troops."
http://www.coha.org/honor-shame-and-duty-the-reality-of-arge...
They'll probably still be very badly trained in comparison to the UK soldiers, but saying Argentina can only field 68,000 troops is incorrect.
That said, I'm pretty certain Argentina would lose an eventual war with the UK over the Falklands/Malvinas.
I'm annoyed at Cristina Kirchner's "bread and circuses" strategy with regards to this, diverting attention from the economic disaster that is brewing (and which will strongly affect us here in Uruguay).
The main point is that I think the wind of change is blowing against the UK on this one. It will take a concerted effort to counter the diplomatic push by Argentina and it is not clear that the politicians, despite the obvious emotive issues surrounding the territory both in the UK and in the Falklands, have a clear long term plan.
Update: Look to the recent conflict in Libya as a guide. The UK had considerable difficulty mounting an operation at Europe's back door. At a distance of 8,000+ miles the problems are multiplied many times over.