I don't remember that incident specifically. I would have just turned 8, and didn't read the papers regularly. I do know that Armageddon was part of the background noise in the 60's - the Cold War and Mutually Assured Destruction were very real and very scary things.
A couple of hard-drives ago I had a bookmark for a Broken Arrow site - long since gone where ever it is that lost bookmarks go when your computer fries out.
Here is a google search result of some related incidents to show that Palomares was not alone in getting close-up and personal with Dr. Strangelove.
"The following is a compilation of some known events involving nuclear devices and facilities under U.S. jurisdiction"
http://www.lutins.org/nukes.html
"U.S. Lost Nukes And Nuclear Accidents"
http://aboutfacts.net/Weapons36.htm
Selected Accidents Involving Nuclear Weapons 1950-1993
Greenpeace March 1996
http://www.user.dccnet.com/welcomewo.../greenacci.htm
Broken Arrows: Nuclear Weapons Accidents
http://www.atomicarchive.com/Almanac...s_static.shtml