Town stayed amongst the pack at the top of the Championship as goals from Grant Leadbitter and Carlos Edwards gave Blues victory at Selhurst Park.
Leadbitter put Roy Keane's side ahead on 51 minutes from the penalty spot after Claude Davis pulled back Jon Stead inside the box, the Eagle sent-off for the offence.
Town extended the lead five minutes later when Andros Townsend and Leadbetter combined to set up Carlos Edwards at the far post.
Townsend was shown a red card in the closing stages after what was deemed a high tackle on Julian Speroni and Neil Danns gave the Eagles a lifeline with a goal out of nothing in added on time but Blues held on for the points to extend the unbeaten start to the season to four games.
Darren O'Dea was handed his debut for Town after joining on loan from Celtic in midweek, the Republic of Ireland international coming in at left-back to replace Shane O'Connor.
Jon Stead kept his place upfront with Tamas Priskin dropping to the bench, while Palace included just Owen Garvan and Alan Lee of their former Town contingent in the starting line-up.
David Wright and Darren Ambrose missed out through injury, while Pablo Counago - who joined the Eagles on a year long loan yesterday - was restricted to a half-time introduction to the fans along with new Dutch recruit Edgar Davids.
Garvan went close with a right foot effort inside the first 30 seconds while at the other end Stead forced Speroni into a low diving save to his left.
Gareth McAuley cleared from the lively Wilfried Zaha before Town almost took the lead on 15 minutes, David Norris crowded out at the nearpost from Stead's cross.
Paddy McCarthy and Lee both failed to get on the end of Zaha's cross in Palace's best moment of the first-half but it was Blues who shaded what few chances there were and Stead saw a cross deflect off Davis and on to the bar via Speroni's fingertips.
McCarthy was booked for a foul on Townsend, the defender in the right place soon after to kill off the danger as Leadbitter and Stead linked up.
Tommy Smith was denied in the opening minute of the second-half as he looked to work an opening six yards out but Town didn't have to wait long for the breakthrough in the key moment in the game.
McAuley won the header and Stead was pulled back by Davis with Palace looking for the offside. Referee Moss pointed to the spot though, Davis was dismissed and Leadbitter sent Speroni the wrong way from 12 yards.
Adam Barrett replaced Kieron Cadogan as the Eagles looked to add numbers to their defence but Town extended the lead before the substitute had got in the game, Townsend releasing Leadbitter whose cross was buried in the net by Edwards at the far post.
Norris took his tally of yellow cards to three after a foul on Garvan but it was Palace who were showing their frustration, Lee having a lengthy lecture from referee Moss.
Luke Hyam and Garvan picked up bookings following a minor scuffle, before Townsend even the numbers up on pitch, seeing red after a challenge on Speroni.
Jon Obika, a team-mate of Townsend's at Tottenham, replaced Andrew Dorman for his debut after joining on loan from Spurs on Friday.
Alex Marrow, another new arrival at Selhurst, replaced Lee for the final six minutes but Town restricted Palace to a Danns shot wide and Zaha being denied by Marton Fulop's quick feet until Danns gave Palace a lifeline with a header in added on time.
C.Palace: Speroni, Clyne, Davis, McCarthy, Bennett, Cadogan (Barrett 52), Danns, Garvan, Dorman (Obika 75), Lee (Marrow 82), Zaha. Subs not used: Andrew, Djilali, O'Keefe, Price. Sent-off: Davis. Booked: McCarthy, Garvan.
Town: Fulop, Peters (Eastman 90), McAuley, Smith, O'Dea, Edwards, Leadbitter, Norris, Hyam (O'Connor 90), Townsend, Stead (Priskin 85). Subs not used: Murphy, Brown, Healy, Hourihane. Sent-off: Townsend. Booked: Norris, Hyam.