NASHVILLE - Up in the polls, money, and momentum, Barack Obama is largely considered the current frontrunner in the race for the presidency, 28 days out.

“Obviously we like the position that we’re in, but we understand that we have to battle every day,” David Axelrod told reporters today, adding they don’t get “too intoxicated” by favorable polls.

But Obama has always thrived as the underdog, and today his campaign reclaimed the mantle - at least for tonight’s debate.

“When it comes to sheer format, we enter today’s debate the decided underdog.  John McCain does extremely well in town hall settings. It’s been his favorite format throughout his career and we think that he will of course do very well,” a spokesman said in a memo sent to reporters.

NASHVILLE - Obama campaign manager, David Plouffe, sent an email to supporters, urging them to watch tonight’s debate, and dishing on the campaign’s strategy in a video message.

Taped yesterday in Asheville, North Carolina, Plouffe noted they had an “excellent chance” of winning the Tar Heel State and that there was “a lot of good news” to discuss.

Plouffe believes Obama has solidified support in many of the states John Kerry won in ‘04, and since McCain “remarkably” pulled out of Michigan, he said the GOP is targeting only four states: Pennsylvania, New Hampshire, Wisconsin, and Minnesota.

“We feel very strong about our chances in all four of those states,” Plouffe said, saying they would continue “to fight as hard as we can” there. Meanwhile on offense, Obama is “gaining strength” in North Carolina, Virginia, Colorado, Florida, and Ohio, he said.

Plouffe couldn’t resist talking about his campaign’s documentary on McCain’s ties to Charles Keating of the late ’80s savings and loan crisis in the four and a half minute video, before urging supporters to donate their money and time. “We’re gonna ask you to continue to really do inhuman amounts of work for us, because the future of our country is at stake,” he urged them, adding the campaign would “help facilitate” their travel to one of the battleground states.

Watch it here:

NASHVILLE - Barack Obama arrived in Nashville this afternoon after spending the past couple days holed up in western North Carolina preparing for tonight’s debate. Obama senior advisor David Axelrod briefed reporters traveling with the campaign on the “rigorous” preparations, and gave John McCain an edge tonight since the town hall style of debate is McCain’s “preferred format.”

Axelrod said Obama was at work when the Illinois Senator’s beloved Chicago White Sox lost to the Tampa Rays, brushing up on things that popped up after the previous debate and familiarizing himself with the format and camera positions.

But there was no cramming at debate camp. “He’s been fighting this fight for change for a long time, so he doesn’t have to relearn a message – he’s not trying to learn something new here. His fundamentals have been the same for 20 months, and that makes preparing an easier task,” Axelrod explained.

The campaign is expecting and prepared for an “aggressive” debate and is thus prepared to discuss Obama’s relationship with 60s radical William Ayers should it come up. That also means McCain’s ties to Charles Keating are “germane.” Axelrod would not speculate if Obama will bring up the savings and loan crisis that put McCain in the “Keating Five,” but said, “I don’t think he’ll shy away from a discussion of it if it comes up.”

While the campaign is prepared to play offense and defense, Axelrod added, “One hopes that the focus of this debate will be the issues that touch on the lives of the American people.”

Even if there are no fireworks tonight, there are still 28 days to go, and those on the Democratic side are ready to rumble. “This is going to be a very, very pitched battle. We’re fighting over the presidency and the direction of this country and we don’t expect anything less,” Axelrod said.

ASHEVILLE, NC - Standing outside the Vanderbilt Wing at the western North Carolina resort where he’s conducting debate preparations, Barack Obama talked to reporters this afternoon about the tanking markets.

“It is a reminder that the rescue package that was passed last week is not the end of our efforts to deal with the economy, it’s just the beginning. I think it is very important for Secretary Paulson and Federal Reserve Chairman Bernanke to move swiftly and try to restore confidence as quickly as possible, and effectuate the plans based on the authority that has been given to them by Congress,” he said.

Mr. Obama then segued to tomorrow night’s debate, saying the American people are “anxious” to hear the two candidates talk about their plans for the economy. “I was a little surprised over the last couple of days to her Sen. McCain say, or Sen. McCain’s campaign say, that we want to turn the page on the discussion of the economy and a member of Sen. McCain’s campaign saying today that if we keep talking about the economic crisis we lose. I’ve got news for the McCain campaign, the American people are losing right now,” he said.

“I cannot imagine anything more important to talk about than the economic crisis and the notion that we’d want to brush that aside and engage in the usual political shenanigans and scare tactics that have come to characterize too many political campaigns, I think is not what the American people are looking for,” he continued.

While Obama pledged to continue to talk about the economy on the campaign trail, he did not explain why his campaign decided to participate in “the usual political shenanigans” by launching a website focused on his rival’s connections to Charles Keating.

Obama ignored two questions about why his campaign brought up the Keating Five.

ASHEVILLE, NC - Hours after Barack Obama chastised the McCain campaign for “swift boat” attacks on his character for tying him to Bill Ayers, the Democrat launched a new website to focus on John McCain’s connections to Charles Keating.

The Obama campaign produced a 13-minute documentary on McCain’s relationship with Keating, who served time in prison for his role in the 1980s savings and loan scandal. McCain was one of five U.S. senators known as the “Keating Five” accused of improperly intervening on behalf of Keating.

It was alleged that the five senators, who received campaign contributions from Keating, urged regulators to back off from his Lincoln Savings and Loan Association, resulting in the savings and loan crisis.

After a nine month investigation of the Keating Five by the Senate Ethics Committee, it was determined that McCain had minimal involvement in the scandal, but the Arizona senator was slapped with exercising “poor judgment.”

Stay tuned for the full documentary, but here’s a preview, released late last night by the campaign.

Campaign manager David Plouffe urged supporters to watch and share the video. “The point of the film and the web site is that John McCain still hasn’t learned his lesson,” he wrote. “And this time, McCain’s bankrupt economic philosophy has put our economy at the brink of collapse and put millions of Americans at risk of losing their homes.”

Obama himself is holed up in debate preparations and has not yet brought up McCain’s connections to Keating on the campaign trail. In May, however, a surrogate said McCain was “up to his neck in the Keating Five and savings-and-loan scandal.”

When asked later by a reporter if Keating was “fair game,” Obama responded, “I don’t think there’s any doubt that John McCain’s public record about issues that he has apologized for and written about is not germane to the presidency. I was just asked previously about a whole host of issues associations that were a lot more flimsy than John McCain’s relationship to Keating Five and what I have said is that I cannot quarrel with the American people wanting to know more about that, and of me having to answer questions about it.”

ASHEVILLE, NC - Barack Obama took a break from his debate preparations in the Blue Ridge Mountains of western North Carolina, to hold a rally on the football field at Asheville High School.

One month before Election Day and one day after Sarah Palin accused the Democrat of “palling” around with terrorists, Obama responded as only a frontrunner can - not by refuting the claims (which his campaign did yesterday) - but by dismissing them as, well, pathetic.

Standing before more than 20,000 on the 25 yard line, Obama answered Palin’s attack by going on the offense. “I want ya’ll to listen to this - [McCain's] campaign has announced that they plan to - and I quote - ‘turn the page’ on the discussion about our economy and spend the final weeks of this campaign launching Swiftboat-style attacks on me,” he began, referring to a report in yesterday’s Washington Post that quoted a senior McCain advisor.

“We are facing the worst economic crisis since the Great Depression, and John McCain wants us to ‘turn the page’ on talking about the economy?” he continued incredulously.

Without mentioning Palin or Ayers, he simply said, “Senator McCain and his operatives are gambling that he can distract you with smears rather than talk to you about substance. They’d rather try to tear our campaign down than lift this country up. That’s what you do when you’re out of touch, out of ideas, and running out of time.”

The crowd roared, but he wasn’t finished. “I want all of you to be clear, I’m going to keep on talking about the issues that matter. I’m gonna keep on talking about the economy, I’m gonna talk about health care. I’m gonna talk about education. I’m gonna talk about energy. I’m going to keep on standing up for the hardworking families who aren’t getting a fair shake in this economy. We’re not going to let John McCain distract us, we’re not gonna let him hoodwink you, or bamboozle you,” he said, adding, “The American people are too smart for that.”

The Obama campaign would not comment on the Associated Press’ claim that Palin’s comment was “racially tinged,” leaving the candidate’s response stand alone.

ASHEVILLE, NC - Today’s New York Times ran a front page story on Obama’s “crossed paths” with William Ayers, a 1960s radical who used to detonate bombs to protest Vietnam, clearly catching the attention of the GOP ticket.

Although the Times couldn’t come up with much linking Obama and Ayers, it didn’t stop John McCain’s “pit bull” from dropping a bomb of an attack today - exactly one month before the election.

Down in the polls, Alaska Governor Sarah Palin told donors in Colorado that Obama “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.”

As Obama was in an airplane heading to Asheville, NC, for debate preparations, his campaign responded forcefully with a statement, calling Palin’s shot “desperate,” “false,” and a distraction from the nation’s economic ills.

Governor Palin’s comments, while offensive, are not surprising, given the McCain campaign’s statement this morning that they would be launching Swiftboat-like attacks in hopes of deflecting attention from the nation’s economic ills. In fact, the very newspaper story Governor Palin cited in hurling her shameless attack made clear that Senator Obama is not close to Bill Ayers, much less ‘pals,’ and that he has strongly condemned the despicable acts Ayers committed 40 years ago, when Obama was eight. What’s clear is that John McCain and Sarah Palin would rather spend their time tearing down Barack Obama than laying out a plan to build up our economy.

The campaign pointed to this morning’s Washington Post, which reported that the GOP was about to adopt a “fiercer” strategy against a surging Barack Obama as evidence of their assertion that the McCain camp was willing to use Swiftboat techniques to change the subject from the economy.

Read the full Obama - Biden campaign response below the jump.

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CHICAGO - For the past few weeks, Barack Obama has benefitted in the polls by talking about the economy. Today his campaign announced on a conference call with reporters that it was moving into a new phase, and will be focusing on health care.

The term “universal health care” has long been radioactive as many conservatives point to the questionably successful socialized care in Canada. But, shaping the dialogue, the Obama campaign says that while Obama plans to build on the system we have, it is McCain who is going out on a limb, describing his health care plan as “radical” and one meant to “restructure health care in America.”

“The point of John McCain’s plan is to drive you out of the insurance you have through your employer and out into the marketplace,” a health care advisor explained. Under McCain’s plan, Obama advisors warn that at least 20 million people will be be forced to abandon their employer based coverage and delve into the individual market.

While McCain offers a $5,000 tax credit for this, the Obama camp says it’s really a “bait and switch.”  Obama’s advisors say because private plans cost more than employer based plans, $5,000 just won’t cover it.

And that’s not all. The Obama camp claims to pay for that $5,000 credit, McCain and Sarah Palin will tax people’s health benefit “for the first time in history.” They explained, “Someone who’s earning $40,000 and receives a $10,000 plan from their employer will be taxed at $50,000.”

Essentially a tax increase that “millions and millions” of Americans will face, Obama’s team explained.

Democrats say they are the safe pick, but also boasted to have “the most aggressive plan to make the health care system work for people of anyone who has ever run for president.”

Part of that aggressive plan will include ensuring those with preexisting conditions - like John McCain - will have coverage. “Senator McCain would have a very difficult time under his own plan given his status,” an advisor told reporters.

GLENSIDE, PA - Following his rally in southeastern PA, Barack Obama dropped by a local flower shop on his way back to Chicago, where tonight he’ll spend his 16th wedding anniversary with his wife, Michelle.

As Obama shelled out $47.70 for a dozen white roses, he was questioned by reporters on the successful vote in the U.S. House of Representatives on the bailout bill. Just hours earlier, the Democratic nominee urged politicians, “For the sake of our families, our economy, and our country, we need to step up to the plate and pass this plan.”

Standing at the counter of Penny’s Flower Shop, Obama said he wasn’t planning on doing an avail, but that he was “glad to see we finally got this dealt with.” He stressed going forward that taxpayers be protected and that homeowners are benefited and cautioned that this is the beginning of fixing our economy - not the end of the process.

“The fundamentals of the economy aren’t sound and we’re going to have to do a lot of work moving forward. So if we can stop the bleeding with this package, implement it effectively, and then move forward to deal with the broader problems on Main Street, then hopefully we can get our economy back on track,” he explained.

As the visible head of his Party right now, Obama also played a hand at helping to secure more votes for the bill, explaining that he held a conference call with Democrats who had initially voted no on the bailout earlier this week to urge them to reconsider, that the $700 billion would, in fact, help Main Street as well as large banks.

“They also I think wanted to hear from me, as potentially the next president who’s going to be implementing some of these policies after January 20th, and wanted some assurance that in fact—on the foreclosure provisions, preventing foreclosure, on assuring that homeowners are helped and that taxpayers are getting their money back— that I felt comfortable that this would not prevent me from being able to do those important tasks,” he said.

With that the man who may potentially be the next president turned and said, “Alright, where are my flowers at?”

ABINGTON, PA - “How about that debate last night?” Obama asked a crowd of about 6,000 at his rally in suburban Philadelphia. The Illinois senator flew into southeastern Pennsylvania from Michigan, where he took in last night’s first and only vice presidential debate from his hotel.

“A Scranton boy - done good. I was so proud of Joe,” Obama gushed of his running mate’s performance. “America I think saw clearly why I felt he would be such a great vice president - especially during these difficult challenging times, so we are very, very proud of Joe.”

“There were a lot of noteworthy moments in that debate last night, but there’s one that sticks out this morning,” Obama continued. “It’s when Senator Palin said to Joe Biden - Governor Palin said to Joe Biden that our plan to get our economy out of the ditch was somehow a job killing plan. That’s what she said. I wonder if she turned on the news this morning,” he said.

Citing today’s jobs report that show the country has experienced its ninth straight month of job loss, Obama noted the Bush policies that got us here are ones a McCain/Palin ticket would continue to support. “So when Senator McCain and his running mate talk about job killing, that’s something they know a thing or two about. Because the policies that they have supported and are supporting are killing jobs in America every single day,” he said.

Obama will fly home to Chicago to celebrate his 16th wedding anniversary with a “romantic dinner” with Michelle, before he heads to Asheville, North Carolina, to prepare for his own debate against John McCain on Tuesday.