Personally I think graffitti of any insulting nature to any race should be removed and investigated.
See what people mean about racism working both ways though. A lot of the time it does seem that political correctness goes only one way.
An an example:
My old man was stabbed (he's a public school bursar!) with his own pen by a Black delivery driver over an argument about his driving. (Was driving like a c-unt round a school site). When my old man phoned the police they didn't want to know. The only reason they took it up in the end is because he reminded them time and time again that it was a racist attack (He called him a 'White c-unt' etc). When it went to court the cocksucker got off easily with the 'superior white man did this and I'm just a lowly black man trying to make an honest living cr@p.' Funny because if it was the other way around I'm sure the whole world would have gone up in arms.
All for action as long as there's a level playing field when it comes to racism.
Dave