(By the way I still have not seen or heard ANY video audio of people shouting this. I've only seen video of an obnoxius liberal harassing McCain supporters in line asking them if "you believe Obama is a terrorist." As far as I am concerned these "terrorist" and "kill him" shouts are rumors until I see proof.)
McCain says, "I have repudiated every time someone has been out of line whether they are part of my campaign or not" and brings up the T-shirts Obama supporters have made with anti-Palin slurs. (These shirts were also featured on Obama's presidential website by one of his supporters).
Obama, I believe brings up Ayers first out of frustration. McCain says "I don't care about some old washed up terrorist:" but "we need to know the full extent of this relationship" as well as his connections to ACORN.
Obama says Ayers is a guy who committed terrorist acts when he was a kid and ACORN is a group he represented alongside the DOJ.
McCain starts slamming him on Ayers. Turns out he does care out a little bit about that ol' washed up terrorist. McCain says Obama routed money to ACORN and launched his politcal career in Ayers' living room.