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Asked about Obama's "associations," McCain refers to Ayers without naming him during a town hall with Palin in Waukesha, Wisconsin.

"We need to know the full extent of the relationship, because of whether Sen. Obama is telling the truth to the American people or not. That's the question."

Says he doesn't care about "an old washed-up terrorist," but cares that Obama has referred to him as "a guy who lives in my neighborhood."

Obama camp response here.

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