Remember Bill Clinton's "fairy tale" comments referring to Barack Obama's Iraq war position? Many deliberately misinterpreted these words as having targeted Barack Obama's persona. Those are the famous "Clinton rules" described by Paul Krugman, to the effect that anything the Clintons say is considered evil.
Today Obama's "You can put lipstick on a pig...it's still a pig" comments are being taken out of context by Matt Drudge, the AP, etc.
I saw the video with the context surrounding the controversial wording in question and concluded that Obama was clearly referring to John McCain, because Sarah Palin was not mentioned.
Does it feel good?