  We present a preliminary measurement of the time-dependent CP asymmetry in B0
--> K*0 (K_S0 pi0) gamma decays based on 431 x 10^6 Upsilon(4S) --> BBbar
decays collected with the BaBar detector at the PEP-II asymmetric-energy e+e-
collider at SLAC. In a sample containing 316 +/- 22 signal events we measure
S_{K* gamma} = -0.08 +/- 0.31 +/- 0.05 and C_{K* gamma} = -0.15 +/- 0.17 +/-
0.03. The uncertainties are statistical and systematic, respectively.
