Where I grew up there was very little in the way of non-white English people, apart from the permanent travellers, who are pretty darn cool. There was one indian family, who true to stereotypes owned the newsagents, now we weren't inherently racist per-se, well actually we was, but it was never meant with any sort of malice, well, it might've been, I can't speak for everybody. Anyway, as you'd expect, all the kids referred to this newsagents as the "paki shop" as did I, due to wanting to feel like I belonged. This family had a kid the same age as me, and one day I used the term "paki shop" in his hearing, now this kid was a cunt, theres no two ways about that, but he did have the moral highground on this one, anyway, he challenged me to a fight at lunchtime, as you do, even though I apologised (yes I am well aware an apology doesn't exactly make up for institutionalised racism, and it wasn't exactly heartfelt) and in an act of "self defense", I kind of beat the shit out of him... Even though he had the moral highground.
Ahh, not my proudest moment. Might not even be my most racist either, to be honest. I mean, it was one comment that got out of hand, pretty bad, especially the beating up part, but I am not sure where it ranks on the "racist" scale, I've probably been more racist with less consequences, but tend to forget about it, I dunno...