Here's part of the exchange from the town hall:
Constituent: "What I'm here to do is ask you for your apology."
McCain: "What apology is in order?"
Constituent: "Because that was very clumsy of you"
McCain: "Was there anything wrong with what I said?"
Constituent: "Are you saying you're not apologizing?"
McCain: "I don't know what to apologize for."
Heard in the back: "For calling tea partiers hobbits!"
McCain: "What I said was true. It's unrealistic and unfair to the American people to tell them that we have to pass a balanced-budget amendment to the Constitution before we would act. If anyone misunderstood that then of course I would apologize. ... But it's not my fault if they misunderstood. ... I am sorry if I was misunderstood. But I am not sorry for what I said. Why should I if it was a fact?" --
http://news.yahoo.com/Bwahaha!

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