The Spain gaffe seems to be having more life than I would have thought, mostly because the McCain spokespeople seem intent on shooting themselves in the foot, repeatedly, about this:
Email from Randy Scheuneman referring to the Prime Minister of Spain as "President" and saying that McCain meant what he said (whatever that is)
Meanwhile, the interviewer believes he wasn't confused about Spain not being in Latin America, but just wanted to avoid the question. By way of background, George Bush is still pissed that Spain pulled its troops out of Iraq (they are still in Afghanistan) and has refused to meet with the Spanish Prime Minister despite several requests.
I think that this falls into one of those "gaffes on the campaign trail" areas. Happens in a campaign sometimes, and while I would have liked McCain to have boned up on Spain a bit before sitting down for the interview, this kind of thing happens. And Josh Marshall appears to exhaustively believe the same thing. But, like Bush, this refusal to admit a tiny mistake might end up giving much more play to a small thing and could nudge the news cycle in a direction McCain won't want it to go, and at a critical time for him.