Obama didn't say the Reagan policies were good ones. The Clintons have been able to take his comments out of context to make it appear that he did. That's not admirable, but is fairly common in political campaigns. Obama will probably want to refrain from talking about Republicans (unless he's criticizing Bush) for the rest of the primary season. Presidential campaigns can get a bit rough, and Obama's having a tough week. He'll either be stronger for it, or succumb to it.