McCain was born in the Canal Zone in Gorgas Hospital (Pacific Side). It was an American civilian hospital.
Yes, he is an American citizen.
Yes, according to Panamanian law, he is also a Panamanian citizen having been born in Panama. He can come today and pick up his Panamanian citizenship documents in 24 hours. According to Panamanian law, once a Panamanian, always a Panamanian. One cannot renounce ones citizenship.
Yes, he can also run for president of Panama because he is also a Panamanian.
Good. If McCain wants to be President, let him run in Panama...