“Our opponent … is someone who sees America, it seems, as being so imperfect, imperfect enough, that he’s palling around with terrorists who would target their own country,”
“This is not a man who sees America like you and I see America,” she said. “We see America as a force of good in this world. We see an America of exceptionalism.”

AP debunked the story by writing earlier today:

By claiming that Democrat Barack Obama is “palling around with terrorists” and doesn’t see the U.S. like other Americans, vice presidential candidate Sarah Palin targeted key goals for a faltering campaign.
And though she may have scored a political hit each time, her attack was unsubstantiated and carried a racially tinged subtext that John McCain himself may come to regret.

CNN also wrote on the issue:

The Statement: Republican vice presidential candidate Gov. Sarah Palin said Saturday, October 4, that Democratic presidential nominee Barack Obama is “someone who sees America, it seems, as being so imperfect that he’s palling around with terrorists who would target their own country.”
Verdict: False. There is no indication that Ayers and Obama are now “palling around,” or that they have had an ongoing relationship in the past three years. Also, there is nothing to suggest that Ayers is now involved in terrorist activity or that other Obama associates are.

Here is what Time had to say:

“But the two men do not appear to have been close. Nor has Mr. Obama ever expressed sympathy for the radical views and actions of Mr. Ayers.”