I've always read it under the assumption it isn't true - but that it's such a wonderful story Im going ot pretend it is anyway :)
http://news.ycombinator.com/item?id=591165
"3 points by gry 289 days ago | link
Seems on the up and up to me. Originally published in 1955 in the Reader's Digest by Jerome Weidman.
The table of contents are highlighted in this eBay posting, corroborating the byline."
Updated Ebay auction search for November 1955 Reader's Digest, see the TOC image from [updated] ebay listing:
"The Night I Met Einstein by Jerome Weidman . . . . . .61
http://cgi.ebay.com/Readers-Digest-November-1955_W0QQitemZ38...
Einstein was not only a great genius, but also a great person. If you study a little about the man, you can easily believe this story to be genuine.
Great, great man.
Definitely in the way it's told. But that doesn't automatically mean that the story isn't true. I'm sure RD could report on Barack Obama's election and make you doubt it really happened..