I've seen others say they saw it.
To me, Kerry definitely pulled somthing out. Note cards he was squaring up, or paper he was unfolding.
Bush is doing something to, but I think it is with a pen.
Hubby watched the debate with me but didn't say much about it until I started telling him about the video. When I mentioned that some of us thought maybe he knew the questions ahead of time...he said "Yeah. He took something from his pocket, unfolded it and laid it in front of him". Hubby never uses the internet and hasn't seen any videos, so this is just his observation from the live debate.
I've noticed throughout the many threads on this that those who remember it live say he unfolded something...and those trying to prove it with the video say it was note cards (or a pen, glasses, a fine linen hanky, etc, if they lean left).
BTW, Hubby has always voted for the Dems until this year. It's amazing what a recommitment to Christ (and a nagging wife) can do!