The Clinton campaign took a defensive crouch yesterday after reports that a company headed by one its top advisers had counseled Blackwater CEO Erik Prince.

A subsidiary of Burson-Marsteller, a PR firm headed by Clinton strategist Mark Penn, helped prepare Prince for his congressional testimony Tuesday.

However, Penn told Politico that he was not involved in the account, and said the firm’s work for Blackwater was “a temporary assignment based on a relationship that has concluded.”

John Edwards, the candidate who has stacked his campaign on fighting poverty, was embarrassed once again last week by John Edwards the multimillionaire.

Edwards, who declared his candidacy from the decimated Ninth Ward of New Orleans, and who has repeatedly criticized foreclosures on mortgages held by victims of Katrina, is a major investor in Fortress Investment Group, one of the companies foreclosing.