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This is a rush transcript from "On the Record ," November 6, 2008. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Do you think reports about what anonymous people are saying about Governor Palin are fair? Well, listen to this. You remember the so-called report that Senator McCain aides Steve Schmidt and Mark Salter once went to Governor Palin's hotel room to brief her and the governor walked into the room wrapped only in a towel?

Well, Steve Schmidt from Senator McCain's campaign called me today. Schmidt called to tell me the report is false, a lie, it never happened. Now, according to Schmidt, he never saw Governor Palin wearing anything but business suits or sweats on the campaign plane while relaxing between events. Now, keep in mind this, quote, "story," has been recycled on the Internet and throughout the mainstream media.

Yes, Governor Palin continues to be attacked, but she keeps her head high. Supporters and friends of Governor Palin have lots to say. Joining us live is Kristan Cole, one of Governor Palin's best friends. Kristan, how long have you known the governor?

KRISTAN COLE, FRIEND OF GOV. SARAH PALIN: Gosh, I've known the governor almost 40 years, Greta.

VAN SUSTEREN: Is she a diva?

COLE: Absolutely not. I mean, these folks, these folks that are making these statements about her anonymously -- I mean, the truth is, I've known her almost 40 years and she is a very down-to-earth, very hard-working person. And she would never do anything that's unbecoming as a governor.

VAN SUSTEREN: You know, we watch her from afar and we see her taking a lot of slaps from the media, and she seems to take it with dignity. She doesn't seem to get mad.

COLE: No, she doesn't. I think she -- you know, she expects that. I think that these stories have been completely outrageous and unfair, and they're very disappointing to see them coming out of the media at this time.

VAN SUSTEREN: What's been the impact of this campaign on Wasilla?

COLE: Well, you know, honestly, it's been great because, you know, everyone knows where Wasilla is now. We're geographically dislocated from the lower 48. But the truth is now, with what she's done as the vice president, we feel like we're absolutely middle America.

VAN SUSTEREN: You know, there have been so many reports about this clothing. I'm sure you've seen these reports. Is she a shopaholic?

COLE: The truth is, the governor shops at consignment stores. The truth is, she doesn't shop that often, and she's a lot like me and that's really not something that she enjoys doing. So that's what's so laughable about some of these statements. They're absolutely the opposite of who she is.

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VAN SUSTEREN: Have you had a chance to talk to her since she's returned from the lower 48?

COLE: Actually, I haven't. I sent her an e-mail last night and a text this morning. But it's the first day she's back in the office and I'm sure she's pretty busy. But I hope to see her this weekend.

VAN SUSTEREN: And in terms of the impact on the family, are you able to say, you know -- I mean, how has the family gone through this? It's a rather extraordinary experience being on the vice president -- being on the ticket.

COLE: Well, I think any time you go through something like this, you stretch and you grow. And while there's some of it that you probably would have liked to avoid, I think when you come out the other side, you can really see that it really did make you stronger. And she will be absolutely a better governor for it and she will be a better leader for it.

VAN SUSTEREN: Do you think she likes being governor?

COLE: Absolutely. I think she likes being governor a lot. I mean, she likes being an executive. She likes bringing people together. She likes getting things done. And as governor, that's exactly what she's done, and she enjoys it very much.

VAN SUSTEREN: When we watch her on the campaign trail -- you know, we're just meeting her for the first time. You've known her for almost 40 years. Does she seem different to you, or is that Governor Sarah Palin?

COLE: Can you say that again, Greta?

VAN SUSTEREN: When you see her -- I mean, when you see her on the campaign trail, does that seem very normal to you?

COLE: I would say that sometimes my impression was, is that she would like to have said a lot more. Governor Palin -- she does have a lot to say. She is very passionate about the people of this state, and obviously, the people in the lower 48. She wants to get things done. And I think she would have liked to have said a lot more than she did.

VAN SUSTEREN: All right, Kristan. Well, we're coming up to Alaska, so watch out. We'll be there tomorrow. Hope to see you.

COLE: It'll be good to see you, too, Greta. Thank you.


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