I was working at Waitrose in the soup and ethnic foods aisle, and an eldery couple came along. The man went to get some Ainsley Lister cup a soup, and his wife told him 'We don't want any of that nasty ****** soup.'
I was so stunned I couldn't even move until after they had left the aisle. It was only me and them in the aisle, but even then I was shocked beyond belief.
As to racism itself, I think that the main trouble is ignorance, and that for every person who is no longer racist for whatever personal reasons, there will be another person who remains racist, has multiple kids and teaches them to be racist, and deep down at heart they will always be racist, no matte rho much you try and educate them otherwise.
Basically, it's the parents fault. I knew a lot of racists in high school who alwasy passed it off as not serious or a joke, and truly didn't believe that what they were saying was in any way offensive. (it was, it was never the sort of joke which is just a funny or wry observation, they were always derogatory racist steroetypes of the worst manner)
When delving a little into their history, turns out their parents were racist, and their grnadparents, and so on and so forth. Someone, somewhere along the line, has to break free of that cycle. For me it was my grandparents who weren't racist (because of national service the men served with people of all sorts of races), instilled that view into my parents, who instilled it into me and my sister.
That and going to a multi-nationality boarding school meant I had a whole lot of friends from a whole lot of races. Good times.