During this time the infamous Salamander letter surfaced, which challenged the orthodox story of Mormon beginnings, though the letter was eventually found to be a forgery. As an ardent student of LDS history, the letter caused Palmer to consider the influences of American folk magic on Joseph Smith's religious practices. In 1985, Palmer's research on this issue led him to write and circulate a manuscript called "New York Mormonism" under the pseudonym "Paul Pry, Jr." which became the first draft of "An Insider's View of Mormon Origins". As he grew uneasy with some aspects of LDS history, Palmer approached his CES supervisor about changing positions to teach adults at the Salt Lake County Jail. Teaching more general Christian and Biblical lessons of faith and ethics to all inmates, he was the jail's chaplain and director of its Institute program from 1988 until his 2001 retirement. He also served on the board of directors of the Salt Lake Legal Defenders Association.