SEDONA, ARIZ. –The Palin campaign is not letting many details of her debate preparation leak out. But, we do know that it is going on at her running mate’s ranch here in this picturesque desert town.

A Palin camp aide describe the setting of the Alaska governor’s preparations, “The Governor’s debate prep today is taking place outdoors near a creek on the scenic McCain ranch in Sedona. The serenity and beauty of this setting has contributed to what can be characterized as a relaxed environment. Her family (Todd, Willow, Piper and Trig) are also at the ranch. Several advisors are participating.”

The advisors that the aide is referring to are McCain senior advisor Steve Schmidt; McCain chief foreign policy aide, Randy Scheunemann; Mark Wallace, a former deputy campaign manager for President Bush’s 2004 re-election campaign, amongst others. Cindy McCain is also on hand to make Palin as comfortable as possible in her home.

Joe Biden has enlisted Michigan Gov. Jennifer Granholm to “play” Palin in his debate prep. As you can see in the photo above, provided by the Palin camp, Scheunemann is in the Biden role.

Palin will be doing conservative talk radio while in Sedona, but the campaign has not released which radio shows only saying, “stay tuned.”

PHILADELPHIA, PA — McCain campaign Senior Adviser Steve Schmidt let loose on the New York Times this afternoon during a campaign conference call with reporters, accusing the paper of being a “pro-Obama advocacy organization” that is “150 percent in the tank” for the Illinois Democrat.

While Team McCain has had a number of confrontations with the New York Times during the last seven months–see the February story alleging McCain had an improper relationship with a DC lobbyist, the heated interaction with an NYT reporter in March or the July squabble over a rejected op-ed to name a few–the campaign used some of its most vicious language today.

“Whatever the New York Times once was, it is today not by any standard a journalistic organization. It is a pro-Obama advocacy organization that everyday attacks the McCain campaign, attacks Senator McCain, attacks Governor Palin, and excuses Senator Obama,” Schmidt said. “There’s no level of public vetting with regard to Senator Obama’s record, his background, his past statements. There’s no level of outrage directed at his deceitful ads.”

He didn’t stop there and issued a warning to New York Times readers.

“This is an organization that is completely, totally, 150 percent in the tank for the Democratic candidate, which is their prerogative to be, but let’s not be dishonest and call it something other than what it is,” he said. “Everything that is read in the New York Times that attacks this campaign should be evaluated by the American people from that perspective, that it is an organization that has made a decision to cast aside its journalistic integrity and tradition to advocate for the defeat of one candidate in this case John McCain and advocate for the election of the other candidate, Barack Obama.”

New York Times Executive Editor Bill Keller responded late this afternoon:

“The New York Times is committed to covering the candidates fully, fairly and aggressively. It’s our job to ask hard questions, fact-check their statements and their advertising, examine their programs, positions,
biographies and advisers,” Keller said. “Candidates and their campaign operatives are not always comfortable with that level of scrutiny, but it’s what our readers expect and deserve.”

RACINE, WI — It has gotten ugly.

The McCain campaign is accusing Sen. Obama of playing the “race card” for stating yesterday that the presumptive Republican nominee was engaging in fear tactics and xenophobia.

“Barack Obama has played the race card, and he played it from the bottom of the deck. It’s divisive, negative, shameful and wrong,” said McCain Campaign Manager Rick Davis Thursday, citing multiple statements by Obama yesterday.

“So what they’re going to try to do is make you scared of me. You know, he’s not patriotic enough. He’s got a funny name. You know, he doesn’t look like all those other Presidents on those dollar bills, you know. He’s risky. That’s essentially the argument they’re making,” Obama told supporters in Springfield, MO Wednesday in response to the tv spot McCain released yesterday.

In the new ad, McCain compares his Democratic rival to Britney Spears and Paris Hilton in an attempt to paint him as an empty suit and a vapid celebrity who lacks the experience and skills for the White House.

McCain Senior Adviser Steve Schmidt tells Fox that the campaign felt an “honor-bound duty to respond” to the Obama comments adding that “a lie unrebutted can become truth.” McCain was the victim of racial dirty tricks during the 2000 presidential primary when allies of the Bush campaign spread a rumor that McCain’s adopted Bangladeshi daughter was actually his illegitimate black child.

Schmidt said the campaign learned a lesson from the 2000 experience. “You must respond instantaneously and with all you got,” he said.

No response yet from Camp Obama.

DENVER — Less than one week after the official Steve Schmidt take over of day-to-day operations, pure message discipline today–economy, economy, economy–from Camp McCain.

(Left: Note new “Jobs for America” signage at his event.)

In addition to his speech addressing his jobs plan, the campaign did the following things Monday to hammer home their message:

–announced that 300 economists endorsed his economic plan.

–held two national conference calls for reporters pushing the jobs message.

–rolled out a national “jobs coalition” of small business owners in 19 states.

–released of a comprehensive briefing paper on their plan to balance the budget in four years.

–released early McCain speech excerpts to reporters.

–did not hold a press conference where other issues were sure to come up.

Also noteworthy was the campaign’s restraint regarding the Obama Iraq withdrawal remarks today. While McCain has not yet addressed the comments himself–and we know he must be itching to talk about it–he maintained the message. Even when tossed a softball today by one town hall participant who asked the presumptive GOP nominee what the biggest difference was between him and Obama–McCain showed a good amount of restraint, keeping his criticism related to the economy.

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MEXICO CITY, MEXICO — Sen. McCain admitted today that some recent criticism of his campaign’s performance has been “justified,” but said that the recent elevation of Senior Adviser Steve Schmidt to oversee day-to-day operations is just part the campaign’s transition for the general election.

The presumptive GOP nominee commented on the campaign’s new leadership structure for the first time during an interview Thursday morning with Fox News’ Carl Cameron.

“We’ve had a very great expansion in our campaign and obviously we’re trying to have organizations set up and working in every state,” McCain said, noting that Campaign Manager Rick Davis will remain in his position and maintain overall responsibility. “Steve has been an integral part of our campaign for a long time and he’s just been taking over some more of the responsibilities…all of us thought, including Rick, that it would be better to give Steve some of the more responsibilities, as we’ve given other people more responsibilities as the campaign has expanded.”

Schmidt returned to headquarters to assume greater day-to-day responsibility more than a month ago but officially took over his new role as the political equivalent of a COO this week. The campaign has come under criticism in recent months, even from allies, for an inconsistent message, mismanagement and poorly planned and timed events.

For his part, a candid McCain said his campaign has not been perfect but added that it will be ramping it’s effort going into the final stretch.

“We need to keep doing what we’re doing, only do it a lot harder,” McCain told Cameron. “I’m happy with where we’ve come. I’m happy with where we are. We have been declared dead many times. There’s been much criticism, some of it justified, from the media but somehow we seem to stay in the race and we will stay in…I think I’ll be the underdog right up until a minute before the polls close in California.”

McCain reiterated today that he feels most comfortable campaigning coming from behind, as he did for most of the GOP primary.

“I think though I do best as the underdog and we are within the margin of error in most polls, certainly not all, but I’m confident that that’s when I do best is when I’m the underdog,” he added.

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Philadelphia, PA– Sen. Hillary Clinton jabbed her Democratic rival today for comments he made last week in which he argued that “small town” Americans turn to guns, religion and xenophobia as a result of hard economic times.

“It’s being reported that my opponent said that the people of Pennsylvania who faced hard times are bitter. Well that’s not my experience,” Clinton said during a town hall meeting at Drexel University Friday. “As I travel around Pennsylvania, I meet people who are resilient, who are optimistic, who are positive, who are rolling up their sleeves. They’re working hard everyday for a better future, for themselves and their children. Pennsylvanians don’t need a President who looks down on them, who fights for them, who works for your futures, your jobs, your families.”

Obama reportedly made the comments at San Francisco fundraiser last Sunday according to a report on the Huffington Post web site.

He reportedly said: “You go into these small towns in Pennsylvania and, like a lot of small towns in the Midwest, the jobs have been gone now for 25 years and nothing’s replaced them…and they fell through the Clinton Administration, and the Bush Administration, and each successive administration has said that somehow these communities are gonna regenerate and they have not. And it’s not surprising then they get bitter, they cling to guns or religion or antipathy to people who aren’t like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations.” No comment as of yet from the Obama campaign.

The McCain campaign also immediately chimed in on the Obama comments today.

“It is a remarkable statement and extremely revealing,” said McCain senior adviser Steve Schmidt. “It shows an elitism and condescension towards hardworking Americans that is nothing short of breathtaking. It is hard to imagine someone running for President who is more out of touch with average Americans.”

Schmidt continued: “This statement demonstrates that he will have great difficulty connecting because it’s clear he holds the people he’s describing with some measure of contempt. The condescension and elitism inherent in the statement is remarkable. The notion that because people are in a tough economy, that’s why they go to church, thats why they have guns, that’s why they’re anti -immigrant–it is a remarkable series of condescensions towards the heart and soul of this country. The people who live in small town America and I think people will resent it and be very angry about it because that is not how most Americans view themselves.”

((With reporting from Bonney Kapp in Lubbock, TX))

UPDATE: FNC’s Aaron Bruns reports the first Obama campaign semi-response: “Senator Obama has said many times in this campaign that Americans are understandably upset with their leaders in Washington for saying anything to win elections while failing to stand up to the special interests and fight for an economic agenda that will bring jobs and opportunity back to struggling communities. And if John McCain wants a debate about who’s out of touch with the American people, we can start by talking about the tax breaks for the wealthiest Americans that he once said offended his conscience but now wants to make permanent,” Obama spokesman Tommy Vietor said.

Wayne, MI — While the McCain campaign is aggressively confronting the New York Times about the piece they are calling sleazy and tabloid, don’t expect any legal action any time soon.

Senior Adviser Steve Schmidt told reporters aboard the McCain campaign plane today that suing the Times for libel is “not an actual recourse we have.”

“We are very disappointed. (The story) was deeply unfair,” Schmidt said, but added that taking the Times to court is “not a feasible thing to do. It’s not a winnable case….being a public figure and all that.”