Eight months ago, who knew David Letterman would see himself in this position? Back in October, John McCain did his best to make amends after famously snubbing the host for the economic crisis. Now it’s David who’s trying to keep the peace…with Sarah Palin.

On Tuesday’s broadcast, Letterman cracked more than a few jokes abut the Alaskan governor’s visit to New York. In addition to comparing Palin’s look to a “slutty fight attendant” (you can see his Top 10 after the jump), he also made references to one of Sarah’s children. Which daughter he was commenting about is part of the issue at hand.

During that show, David made several quips about a family appearance at a Yankees game. At one point he said “there was one awkward moment during the seventh-inning stretch: Her daughter was knocked up by Alex Rodriguez.” He also threw in a joke about New York’s former disgraced governor. “The toughest part of her visit was keeping Eliot Spitzer away from her daughter.”

After receiving criticism for his comments, Letterman delivered a version of an apology during Wednesday’s telecast. Although he stressed that he’s a comedian desperate for cheap laughs, he denied ever making sexual remarks about Willow Palin, the 14-year-old daughter who was actually at that baseball game. He claims the jokes were about Bristol Palin, the 18-year-old mother.

Whether you agree with the late night host (or believe his explanation), Palin threw more fuel into the fire today with a few questionable comments of her own. During an interview on the Today show, Matt Lauer asked about a statement made by the family after Letterman invited them to appear on the show. “‘It would be wise to keep Willow away from David Letterman.’ I’d like you to explain what that meant. Are you suggesting David Letterman can’t be trusted around a 14-year-old?”

“Take it however you want to take it. It is a comment that came from the heart,” she replied.

After watching all the clips, let us know what you think. Was Letterman wrong for making any references about the Palin chlidren? Does the comedian owe the family an apology? Or is Sarah Palin simply blowing this thing out of proportion?