I live in the South, so I'd say at least 90% of the people I know are racist. If I stopped associating with racist people...well, I'd have to move or something.
Generally, I feel like the more we move along the more different things are deemed "racist." My general view is that one can choose if they are offended by something or not. For example, my grandmother came here from Italy. She got called a WOP quite often and other such phrases. She always laughed and said those things were only hurtful if you let them be. I think if more people took that approach, racism would end faster. Don't let words mean so much to you and they'll lose meaning across the board. The actions will follow suit.
Example B. I live in a racist area, but went to a private school. It was primarily upper class white students, but we had a few students that were other races. No one was telling us "accept each other" or that we were different somehow, so we just all looked at each other as people, not people of different races. It wasn't until I left school and entered the "real world" that I even began to notice skin color.
Now, some people are so racist that there's not much that can be done about it. But if new generations start to not look at skin color rather than look super hard at skin color, perhaps we'd make progress.