MSNBC's Gregory reported Palin quote on Obama "palling around with terrorists" -- but not her distortion of the NY Times article she cited to make that claim

SUMMARY: MSNBC's David Gregory reported Gov. Sarah Palin's assertion that Sen. Barack Obama has been "palling around with terrorists" without noting Palin's distortion of The New York Times article she used to make her claim, or that the Obama campaign issued a statement rebutting the claim.

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