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I'm not a political strategist, but I can't help that thinking owning up to it would be a smart move, dispelling the haze of distrust that is still over her from her days with slick-Willy. It would be easy to say that she had no knowledge, but it doesn't get her anywhere. Instead, she could take a Ron Paul approach and say that we need to focus on this (or any other issue) instead of being distracted by Xxx issue.
I wish it had turned out a little better for the Clinton campaign. I think she would have preferred something like this. That would have been more enjoyable. I dunno....whatever happened to the days when being an environmentalist meant that you planted a tree and not a question?