This was going to be quite a good post with some serious polishing. I have day to day experience working with many races of people and it is a good and educative experience. I have foreign born workmates who experience racial discrimination on a daily basis. I cannot imagine what it is like for them. Anyone who says they are not racist in some way is a liar. This fact needs be realised before you can move forward.
I confess to being racist. I am never deliberately unkind to anyone, so my racism is not overt. It is the more subtle kind. I resort to stereotypes about people who I don't know and who come from another country, well, I resort to stereotypes with fourth generation Australians too.
I make a joke of racism. 'You gyppos really are shifty gits', I say out loud to an Egyptian workmate. It is a joke, he knows it and I know it, but is it? And what is the long term effect of hearing this often?