I am dismayed that Greg's answer continues to get upvotes because I think it is badly off target. I would like to note first that quantum entanglement experiments are not done with electrons but rather with photons. So I have taken the liberty of translating Bob's article word-for-word into the language of photons. It is often said that the case of entangled photons corresponds perfectly to the case of electrons except that all the angles are divided by 2: instead of perfect anti-correlation at 180 degrees, it becomes perfect anti-correlation at 90 degrees, etc. I hope I have transformed Greg's argument correctly; and I believe that it becomes transparently nonsensical when put in these terms.
Here is how it goes:
"Quantum entanglement is different from the "classical entanglement" in the following way:
In your example, each ball has only one property of interest, namely "color ∈ {white, black}".
In the traditional examples of quantum entanglement, each ball (particle) has two properties of interest, namely "ability to penetrate a vertical polarizer" and "ability to penetrate a 45 degree offset polarizer". Moreover, the properties are complementary, i.e. you can't actually measure them simultaneously to arbitrary precision.
"Still, in the entangled state, each of these properties alone is perfectly (anti-)correlated: If Alice sees a particle penetrate her vertical polarizer, then Bob will always see a particle blocked. And similarly if they both offset their polarizers 45 degrees.
"The paradox, now, is the following:
Suppose that Alice measures sees a particle go through her vertical polarizer. But observer Bob offsets his polarizer 45 degrees and also sees a particle go through. Exhulted, Alice proclaims that she has managed to measure two complementary properties simultaneously! After all, her measurement showed her the particle had the ability to go through a vertical polarizer, while according to Bob's measurement her particle should with certainty be blocked by a 45 degree offset polarizer.
"Imagine her surprise, then, when she tries to confirm her conclusion by putting an offset polarizer in series with her vertical polarizer and finding that the particle which got through the first polarizer still gets through the second polarizer fifty percent of the time, even when Bob simultaneously detects a particle penetrating his offset polarizer."
I hope I have not done Greg's answer any injustice, but I believe this is what it leads to. (I should also mention that I totally disagree with the premise of starting off with colored balls as the classical "straw man". But that's another question.)