  We present a detailed analysis of our recent observation of synchronous Rabi
oscillations between the electronic ground state and Rydberg states in a
mesoscopic ensemble containing roughly 100 ultracold atoms [M. Reetz-Lamour
\textit{et al.}, submitted, arXiv:0711.4321]. The mesoscopic cloud is selected
out of a sample of laser-cooled Rb atoms by optical pumping. The atoms are
coupled to a Rydberg state with principal quantum number around 30 by a
two-photon scheme employing flat-top laser beams. The influence of residual
spatial intensity fluctuations as well as sources of decoherence such as
redistribution to other states, radiative lifetime, and laser bandwidth are
analysed. The results open up new possibilities for the investigation of
coherent many-body phenomena in dipolar Rydberg gases. As an example we
demonstrate the van der Waals blockade, a variant of the dipole blockade, for a
mesoscopic atom sample.
