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Webb Simpson, a two-time winner last year, carded a six-under 65 and is alone in second place. Harrison Frazar, Kevin Na, Chez Reavie, Derek Lamely and Jarrod Lyle are tied for third after posting five-under 66s.
They were joined there by Bubba Watson, Spencer Levin and Jason Dufner. Watson and Levin both finished 15 holes, while Dufner is through 13.
Palmer and Simpson both started their rounds on the back nine. Palmer poured in a 14-footer for birdie on the 10th. He birdied both par-fives, 13 and 15, to move to minus-three.
That run of three straight birdies gave Palmer a two-stroke lead. His run ended on the seventh, where he tripped to a bogey to cut his margin to one. Palmer two-putted for par on the final two holes to cap his round.
"I had two great days preparing on Tuesday and Wednesday," said Palmer, who missed the cut in his first two events this year. "Getting the old putter back out, and getting the old feelings I've had in the past, the way the swing feels and the way the body feels, it was set up for a good day today."
After making par at the raucous par-three 16th, Simpson drained a 22-footer birdie on 17 and followed with a six-foot birdie putt on 18.
Simpson climbed to minus-seven when he sank a 16-foot birdie try on the fifth. His drive landed in the rough on the sixth and that led to Simpson's only bogey of the day.
NOTES: This event needed a Monday finish last year after frost delays pushed everything back...Defending champion Mark Wilson is tied for 50th at minus- one...Former British Open champion Stewart Cink struggled to seven bogeys, three double-bogeys and a birdie in a round of 12-over 83...Forty-two of the 132 players that started did not finish their rounds.
Half of the field teed off in round two, but no one completed the round. Everyone will return on Saturday to complete the second round. Play begins at 8:45 a.m. local time.
John Daly is the leader at five-under par, although the two-time major winner, who has no status on the PGA Tour and indicated on Thursday he will focus on the European Tour this year. did not hit a shot on Friday.
First-round leader Gonzalo Fernandez-Castano recorded two bogeys in his first seven holes and fell into a tie for second place at four-under par. Jason Day is even through six, K.J. Choi hasn't teed off and the pair joined Fernandez- Castano at minus-four.
World No. 3 Lee Westwood is two-over on Friday and fell to one-over par for the championship. Martin Kaymer, the No. 4 player in the world, is one-under par and didn't strike a shot.
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NEW YORK (AP) -By staying away from the cupcakes, Southern California earned itself a slim new ranking.
No. 1 always seems to fit USC.
Southern California jumped two spots to No. 1 in The Associated Press Top 25 on Tuesday, rewarded by voters for opening the season with a dominant performance on the road against a BCS conference opponent.
Georgia and Ohio State, the preseason Nos. 1 and 2, respectively, started their seasons with glorified scrimmages at home against FCS (formerly I-AA) teams. USC, however, traveled across country to face Virginia and could not have been more impressive in a 52-7 victory.
Georgia fell to No. 2 and Ohio State to No 3.
"We realize that rankings so early in a season are certainly fluid. But rankings do help establish a pecking order for things later in the season," USC coach Pete Carroll said in a statement. "As for moving into the No. 1 spot, it's nice to know that people think highly of our team."
Since reaching No. 1 on Dec. 7, 2003, the final-regular season AP poll of that season, USC has been No. 1 in 39 polls, by far the most of any team during that time.
"Some have said the voters are taking our schedule into consideration," Carroll said. "Our philosophy has always been to schedule outstanding opponents. We need to play challenging games like we just did, traveling across the country to open the season at Virginia. Games like that bring out our best and make us stronger as a team."
The latest voting was close. USC received 21 first-place votes and 1,539 points from the 65-member media panel. Georgia had 20 first-place votes and 1,506 points. Ohio State got 15 first-place votes and 1,497 points.
"I'd say we've evolved as pollsters," said Stewart Mandel of SI.com, who moved USC up to No. 1. "In the past, voters just kind of automatically moved teams up and kept teams where they were if they won."
Georgia beat Georgia Southern 45-21 on Saturday and Ohio State opened with a 43-0 win over Youngstown State.
"There's a bit of a growing backlash for the amount of teams that open with I-AA cupcakes," said Mandel, whose book "Bowls, Polls and Tattered Souls" chronicles college football's controversies. "To see a team [USC] go on the road and play a New Year's Day bowl team from last season, and not only play them but destroy them, how could you not reward that team?"
USC also jumped past Georgia to No. 1 in the USA Today coaches' poll, which has the same top five as the AP poll.
"It's definitely a privilege to be No. 1. But it's not heartbreaking to me if we drop," Georgia offensive lineman Josh Davis said. "It doesn't matter right now what we're ranked. What matters is our next game and right now, that's Central Michigan. The only time the polls matter is in December. That's when the polls matter."
While the Bulldogs opened easy, their schedule ultimately should be as difficult as any team's. Georgia's big nonconference test is at No. 15 Arizona State on Sept. 20. The Bulldogs also face six Southeastern Conference rivals that've been ranked in the first two polls.
As for Ohio State, the Buckeyes play at USC on Sept. 13 before getting into the Big Ten schedule.
But of the teams in this week's top 10, USC and Texas are the only ones that don't play an FCS opponent, and the Trojans are the only team that doesn't play a team from a non-BCS conference.
Get the latest 2009 BCS Championship odds at MySportsbook.com.
The last team to drop from No. 1 after a victory was USC last season. LSU jumped from No. 2 to No. 1 when it beat Tulane 34-9, the same week the Trojans edged Washington 27-24 on the road.
The last preseason No. 1 team to lose the top spot after winning its opening game was Florida in 2001. The Gators beat Marshall 49-14, but preseason No. 2 Miami opened with a 33-7 victory over Penn State and the Hurricanes jumped to No. 1 with Florida slipping to second.
The next four teams in the new Top 25 stayed the same: No. 4 Oklahoma (two first-place votes), No. 5 Florida (five first-place votes), No. 6 Missouri (one first-place vote), No. 7 LSU (one first-place vote) and No. 8 West Virginia.
No. 9 Auburn and No. 10 Texas each moved up a spot, taking advantage of Clemson's big drop. Clemson, ninth in the preseason, fell out after losing 34-10 to Alabama on Saturday.
Also falling out after losses were Virginia Tech, Pittsburgh and Tennessee.
Moving into the rankings were No. 21 Fresno State, No. 22 Utah, No. 23 UCLA and No. 24 South Carolina.
Alabama moved up 11 spots after its big victory over Clemson.
The second 10 started with No. 11 Wisconsin, followed by Texas Tech, Alabama and Kansas. BYU and Arizona State were tied for 15th. Rivals BYU and Utah are both ranked for the first time since 1996.
South Florida was No. 17, ahead of Oregon, Penn State and Wake Forest at No. 20.
The final five were all the teams to move into the ranking, except for Illinois, which dropped four spots and tied South Carolina for No. 24.
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