WATCH THE VIDEO YOURSELF. THE TELEPROMPTER DIDN'T BREAK.
I can't seem to embed it myself, but Petulant at Shakesville has posted the video of Sarah Palin's speech, as recorded by C-SPAN. As I'll explain below, it strongly suggests that this little right-wing urban legend (flogged by Drudge and the PUMAs) is a crock:
BREAKING: Sarah Palin "Winged" Her Speech Because of "Broken" Teleprompter
According to sources close to the McCain campaign, the teleprompter continued scrolling during applause breaks. As a result, half way through the speech, the speech had scrolled significantly from where Governor Palin was in the speech....
Unfazed, Governor Palin continued, from memory, to deliver her speech without the teleprompter cued to the appropriate point in her speech.
Contrast this to Barack Obama who, when last his teleprompter malfunctioned, was left stuttering before a crowd unable to advance his speech until the problem was resolved.
Sarah Palin. Winner.
Go to the video at around 18:10. Palin says, "When oil and gas prices went up dramatically, and filled up the state treasury, I sent a large share of that revenue back where it belonged -- directly to the people of Alaska" -- and over her shoulder you can see that's exactly what's on the teleprompter.
Go to 22:37 ("And there is much to like and admire about our opponent") -- again, her words and the teleprompter match.
Now go to 28:28. Not only can you see "They're the ones who are good for more than talk" over her shoulder -- you can see the text pausing for the applause break.
Politico's Jonathan Martin has already said that there was no malfunction, but you don't have to take his word for it. See for yourself.