I like occasionally to sing Shel Silverstein's "Freaking at the Freaker's Ball". The last time I did, the line

All the fags and the dykes are boogying together

got me some surprised looks from the audience, but then the next line

The leather freaks are dressed in all kinds of leather

resulted in relieved laughter, signaling that the PC crowd (this is Northern California) had decided the song was comical and therefore OK.

I do agree with Will that singing the N-word would be like loosing a big loud stinky fart in the room. Not a good thing.