-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 +hMviZrWnNeZfOcMyq7rhA==

<SEC-DOCUMENT>0001010549-09-000329.txt : 20090429
<SEC-HEADER>0001010549-09-000329.hdr.sgml : 20090429
<ACCEPTANCE-DATETIME>20090429180616
ACCESSION NUMBER:		0001010549-09-000329
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090427
FILED AS OF DATE:		20090429
DATE AS OF CHANGE:		20090429

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PALM HARBOR HOMES INC /FL/
		CENTRAL INDEX KEY:			0000923473
		STANDARD INDUSTRIAL CLASSIFICATION:	PREFABRICATED WOOD BLDGS & COMPONENTS [2452]
		IRS NUMBER:				591036634
		STATE OF INCORPORATION:			FL
		FISCAL YEAR END:			0331

	BUSINESS ADDRESS:	
		STREET 1:		15303 DALLAS PKWY
		STREET 2:		STE 800
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75248
		BUSINESS PHONE:		9729912922

	MAIL ADDRESS:	
		STREET 1:		15303 DALLAS PARKWAY
		STREET 2:		STE 800
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75248

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			CAPITAL SOUTHWEST CORP
		CENTRAL INDEX KEY:			0000017313
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24268
		FILM NUMBER:		09780434

	BUSINESS ADDRESS:	
		STREET 1:		12900 PRESTON RD STE 700
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75230
		BUSINESS PHONE:		9722338242

	MAIL ADDRESS:	
		STREET 1:		12900 PRESTON RD
		STREET 2:		SUITE 700
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75230
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>capital4ashbaugh042909_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2009-04-27</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000923473</issuerCik>
        <issuerName>PALM HARBOR HOMES INC /FL/</issuerName>
        <issuerTradingSymbol>PHHM</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000017313</rptOwnerCik>
            <rptOwnerName>CAPITAL SOUTHWEST CORP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>12900 PRESTON RD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 700</rptOwnerStreet2>
            <rptOwnerCity>DALLAS</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>75230</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Common Stock Warrant (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>3.14</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2009-04-27</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>J</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>286625</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2009-04-27</value>
            </exerciseDate>
            <expirationDate>
                <value>2019-04-24</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>286625</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>286625</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F2"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes</value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The securities indicated were issued in connection with the loan of $3,000,000 made to the issuer by Capital Southwest
 Venture Corporation, pursuant to a senior subordinated secured promissory note.</footnote>
        <footnote id="F2">The securities indicated are held directly by Capital Southwest Venture Corporation, which is a wholly owned subsidiary of
 Capital Southwest Corporation.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ William M. Ashbaugh</signatureName>
        <signatureDate>2009-04-29</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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