I have to deal with this subject myself. I build and play early 19th century banjos and do shows on the history of the instrument. Many terms that are today considered VERY insulting are sprinkled through the lyrics. My answer is to just say up front:" In the attempt to be honest about this music, I do not change the words. You will be uneasy with these lyrics, but if I changed them, you would loose the spirit of the historical context. If you are not at all uneasy, then you may need to look deep inside yourself and find out why. "

With this as an introduction, I have never had a problem. It does however lead to some great debates on racism, and as I see it, that is a good thing.