Roy Keane said the first goal and red card to Claude Davis was the key moment in the game in what he considered a 'very good result' at Selhurst Park.
Davis was shown a red card early in the second-half after a foul on Jon Stead, with Grant Leadbitter putting Blues ahead from the penalty.
Carlos Edwards added a second before Neil Danns gave Palace a consolation with a goal in added on time.
"It was a good result for us against a strong Crystal Palace side," said the Town boss.
"We looked dangerous and the first goal was obviously the turning point. I always felt we needed a second and we should have killed the game off then.
"Grant did a bit in training yesterday and like all good players, he wanted to play. It was a bit of a gamble [after missing training with an ankle injury all week] but we felt it couldn't make the injury any worse. He is an important player for us and that showed today.
"Palace is always a tough place to come but again we showed a lot of spirit. Spirit won't necessarily get you promoted but it will give you a chance."