Quote Originally Posted by Akkristor View Post
The main crux of the situation is, does the Natural 1 outcome of the Charisma check mean that the Check is 'threatened' or 'Distracted', preventing a Take 10.
That "penalty for failure" clause is for the Take 20 rule, which assumes your character repeatedly attempts a task over and over until they perfectly succeed, and the character in question incurs any penalties for failure until the check is completed (which takes several minutes).

This clause is not present when Taking 10, which is explicitly only a single attempt. It can be used on any check which does not expressly prohibit it, such as in the case of Use Magic Device.