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When Obama took the microphone, he said he needed to correct some misconceptions since McCain had been asking "Who is Barack Obama?"
"I was not born in a manger," he said, adding the name Barack, given by his Kenyan father, was Swahili for "that one." He also had an explanation for his middle name, Hussein.
"I got my middle name from somebody who didn't think I would ever run for president," he said.
Obama listed his greatest strength as humility and his greatest weakness: "I'm a little too awesome."
Without naming her, he also made reference to Alaska Gov. Sarah Palin, McCain's running mate. She has been touted by Republicans for her foreign policy expertise because of Alaska's proximity to Russia.
Obama noted the dinner was held at the Waldorf-Astoria hotel.
"I'm told from the doorstep you can see all the way to The Russian Tea Room," he said.
The only times presidential candidates did not speak at the Al Smith dinner were 1996, when President Bill Clinton was not invited after he vetoed a late-term abortion ban, and 2004, when sponsors cited the divisive nature of the campaign and skipped the invitations.
Both candidates closed with warm words for each other, with Obama praising McCain's service to country in the Navy and as a Vietnam prisoner of war.
McCain noted Obama's history-making bid to be the first black U.S. president."I won't wish my opponent luck but I do wish him well," McCain said.