Not that I'm a fan of Kagan's by any means, but is it not possible that it happened as she said? She was taking notes on a call with Allegra and he characterized the NRA and KKK as "bad guy org's"? She may have responded with something like, "Are those two organizations even on the list?"
Again, not a Kagan fan, but I hesitate to rush to judgment just as we expect her not to rush to judgment against our rights.
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The particular part of the document needed explanation for clarity and the Senator wanted to clear it up. The part of the document in question is "neither the NRA nor the KKK was on it. “If you have other names you want me to run down in the Cumulative List, I would be glad to check them out,” he adds, suggesting that Kagan requested the initial check of the NRA and the KKK."
http://cdn.nationalreview.com/pdf/Document.pdf
She had a chance to "clear the air" on that matter but chose to duck it, by saying she doesn't recall the conversation and that the idea is most likely the caller because she is in the habit of scribbling down notes while listening to the conversation. We don't know exactly what happened. Did she really forget? Who knows? But it does suggest the above by the way its transcribed.