"the unlikely but possible oversensitivity" - I guess it depends where you play. I can't think of a place I'd be playing where people wouldn't be offended - or at least, disturbed - by the use of "the n-word".

As far as the "Leefore Brace" song goes - you would want to consider whether people of Italian/Spanish/Portuguese, etc., background, and outside of the "folk music community" are likely to hear the CD. And, you need to get opinions from people of those backgrounds; I'm not sure this forum is the place to get them; it seems to be comprised largely of Anglo/Celts. If there are Latins out there, make yourselves and your opinions known!