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Indianapolis, IN - Sen. Clinton stepped her attacks on Obama Saturday seizing on his remarks about small town American resentment as “demeaning” and “elitist,” during a speech at a manufacturing plant in the Hoosier state.

“I was taken aback by the demeaning remarks Senator Obama made about people in small town America. Senator Obama’s remarks are elitist and they are out of touch. They are not reflective of the values and beliefs of Americans. Certainly not the Americans that I know - not the Americans I grew up with, not the Americans I lived with in Arkansas or represent in New York,” she told a group of factory workers at a transmission plant in the key May 6 primary state.

She relentlessly attacked Obama’s original remarks point by point today for nearly five minutes (VIDEO above), as the NY Senator seeks to reinforce the argument that her Democratic rival is out of touch with average Americans.

“You know, Americans who believe in the Second Amendment believe it’s a matter of Constitutional rights. Americans who believe in God believe it is a matter of personal faith. Americans who believe in protecting good American jobs believe it is a matter of the American Dream,” Clinton said. “The people of faith I know don’t “cling to” religion because they’re bitter. People embrace faith not because they are materially poor, but because they are spiritually rich…people of all walks of life hunt, and they enjoy doing so because it’s an important part of their life, not because they are bitter.”

The Clinton campaign sees the Obama statement as a major gaffe which they will seize on in the runup to the PA, NC and IN primaries as they attempt to strike at the heart of Obama’s message of unity.

“If we are striving to bring people together - and I believe we should be - I don’t think it helps to divide our country into one America that is enlightened and one that is not,” she said. “People don’t need a president who looks down on them; they need a president who stands up for them. And that is exactly what I will do as your president. Because I believe if you want to be the president of all Americans, you need to respect all Americans. And that starts with respecting our hard working Americans”