MY View on this

[adharcric]

A word should only be offensive if it is used in offensive situations, that being said there really aren't any situation the 'N' word is not offensive and really, it's the worst of the worst. There are no (or extremely little) acceptable contexts for the useage of the word.

Go down to where I lived in NY and say it and you will not come out alive, fact.

There are very few acceptable situations - for example, the "wassup nigga" greetings that are quite common between certain teenage groups now.
Of course, it's only acceptable when there are no black people involved (I've seen white/indian/chinese guys call each other niggas) or when there are only black people involved. Clearly shouldn't be used publicly, but there's no reason to get so anal about it otherwise. If the understanding is already there, using the term isn't such a big deal.
That said, I wouldn't use the term because I wouldn't want it to slip out at the wrong time (even if there was no bad intention, I'd get my ass owned as Pasag just noted).

[GIMH]

Isn't political correctness all about not offending people? If you're a racist then i guess you must try and find loopholes to justify your beliefs, but you can still be anti the over PC-ing of society and not be a racist/sexist.

Spot on this IMO. The fact is, that this country has gotten so PC there are many, many things you can't say or do. Having a St. George's flag flying on St. George's day may offend minorities, Christmas lights really should be labelled "Winter celebration lights" so as not to offend minority religions, Gingerbread men are now Gingerbread people, blackboards are chalkboards etc etc. If thinking that all that is stupid makes me a racist...well that would be the final proof in my eyes that the world's gone mad.