Town maintained an unbeaten start to the season with a Jon Walters goal proving enough to give Blues all three points

The striker headed in from Gary Roberts' cross on 72 minutes to make it two wins and a draw from the opening three games for Jim Magilton's side, with Town now sitting in second place behind Coventry.

Roberts came in for George O'Callaghan in the only change to the side that drew at Plymouth last week.

Town started brightly and Pablo Counago almost got in on the end of a sublime Owen Garvan pass, then Counago and Alan Lee combined, Matt Lawrence clearing from inside his box.

Clinton Morrison hooked the ball over the bar on 20 minutes in Palace's first opening, the Republic of Ireland international then firing wide after Stuart Green crossed from the right.

Counago was prominent throughout the first-half, setting up Walters for a cross that Lee failed to convert at the far post, the ball falling awkwardly for the Town striker.

Neil Alexander made his only save of the first-half on the half hour, brilliantly turning away Carl Fletcher's free-kick.

Garvan fired over the bar at the other end after another decisive run from Counago before controversy on 41 minutes, Palace 'keeper Julian Speroni handballing Lee's cross but referee Andy D'Urso called it a yellow card when some would have given red.

Speroni rubbed salt into the wound seconds later with a save from Roberts' low shot, Counago blazing wide with the last kick of the opening 45 minutes.

Walters supplied the first opening of the second period, his shot just evading Alex Bruce at the far post, Lee then spinning and shooting but straight at Speroni.

Counago continued to drive Blues forward, the Spaniard beating three defenders but his attempted pass to Lee was cleared by Mark Hudson.

Shefki Kuqi joined fellow former Blue James Scowcroft in the Palace attack on 63 minutes, Green making way, the Finn getting a good reception from the Town fans.

It was Blues who got the deserved breakthrough on 72 minutes though, Counago and Lee involved in the move, Roberts crossing from the left and Walters heading in from six yards.

Palace made a double change, Dougie Freedman and Jeff Hughes replacing Fletcher and Morrison. Danny Haynes also coming on for Roberts in Town's first change with Sylvain Legwinski soon in the action as well, Lee making way.

Hughes had a shot blocked from a Kuqi pass as Palace pushed forward looking for an equaliser, Freedman then denied by a Bruce tackle.

Billy Clarke replaced the impressive Counago for the final three minutes, the youngster's trickery almost reaping dividends within seconds, his cross forced out by Lawrence.

Scowcroft failed to find the target with a header at the far post from Freedman's corner as the game entered four minutes of added on time.

Haynes and Clarke combined to almost grab a second for Town, Speroni beating out Clarke's shot then blocking Haynes'follow up drive but Walters' goal proved enough.

Town: Alexander, Wright, Bruce, De Vos, Harding, Walters, Garvan, T.Miller, Roberts (Haynes 73), Counago (Clarke 87), Lee (Legwinski 79). Subs not used: Supple, Casement.