Nicky Forster gave Town a first-half lead but Palace left with the points thanks to goals from Jobi McAnuff and former Blue, James Scowcroft.
Forster left Mark Hudson in his wake to burst from the halfway line and slide the ball into the far corner on 30 minutes to give Town a deserved first-half lead.
Palace levelled on 57 minutes through McAnuff and then grabbed the winner four minutes later, Scowcroft credited with the goal after Hudson's header had been cleared off the line.
In his first Championship game as Town boss, Jim Magilton handed debuts to newboys Alex Bruce and Dan Harding, Dean Bowditch getting the nod to partner Forster up front.
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Fozzie celebrates his goal |
Forster and Bowditch linked up well from the first minute, Forster crossing from the right behind the on coming Jaime Peters, then Bowditch taking a Fozzie flick in his stride, Leon Cort forcing him away from danger.
At the other end, Shane Supple saved from Clinton Morrison from close range, then Morrison latched on to a James Scowcroft pass and rounded Supple, Richard Naylor coming to Town's rescue.
Naylor then headed over a Darren Currie corner, Morrison forcing Supple into a comfortable save seconds later following a free-kick from Mark Kennedy.
Good work by Gavin Williams inside his own penalty area helped released Forster, who forced another corner, Naylor heading over again from eight yards.
Bruce then tested Gabor Kiraly with a 25-yard free-kick before Blues broke the deadlock. Forster escaped Hudson down the flank and kept his cool to slide the ball past Kiraly into the far corner.
The goal was celebrated by the whole Town side, including manager Magilton, who couldn't hold back from embracing Forster, taking a smack in the nose for his troubles.
Supple saved low down from Scowcroft's header, Forster beat Hudson for pace again but saw his shot saved by Kiraly at the near post as the half-time whistle blew.
Palace boss Peter Taylor introduced Dougie Freedman at the break, with the Eagles lacking ideas in the first 45 minutes.
Bruce was booked seconds after the restart for a foul on Carl Fletcher, the new signing from Birmingham certainly showing he's not afraid to make a challenge.
A brilliant pass from Forster almost set in Peters, Kiraly off his line quickly to stop the threat.
Palace levelled on 57 minutes, Jason De Vos winning a header on the edge of the box but McAnuff latched on to the space left behind and slid the ball past Supple with his left foot.
Matt Richards immediately replaced the tiring Williams, the Welsh international having played only 45 minutes of pre-season after tendinitis and groin problems.
The Eagles extended the lead just past the hour, Hudson heading towards goal from a free-kick and despite Naylor's attempts at a clearance, Scowcroft hooked the ball over the line.
Harding followed Bruce into referee Kevin Wright's notebook for a foul as the game continued to sway from end to end in a far more entertaining second period.
Peters was denied by desperate Palace defending after Alan Lee, on for Bowditch, had set him up, Forster had the ball in the net but Lee was penalised for a foul, while at the other end Supple saved well from Scowcroft.
Ben Watson replaced Kennedy for Palace with eight minutes left, Magilton playing his last card with Danny Haynes coming on for Peters.
Scowcroft was yellow carded for a foul on former Town team-mate Naylor as Blues pressed for an equaliser, Fabian Wilnis firing over, Lee appealing for a penalty after going down under Cort's challenge, then Naylor blocked out on the edge of the box.
Currie's free-kick was held by Kiraly on the line, then Wilnis headed over from a Currie corner as Blues threw everything at the Palace goal but to no avail.
Town can take plenty of positives from the game though against a Palace team considered amongst the favourites for promotion to the Premiership.
Town: Supple, Wilnis, De Vos, Naylor, Harding, Currie, Williams (Richards 58), Bruce, Peters (Peters 82), Forster, Bowditch (Lee 67). Subs not used: Clarke, Price. Booked: Bruce, Harding.


















