I use the word "nigger" a lot, in conversation, with other whites. I use it in puns or as a joke/self-deprecating humor or quoting movies like Pulp Fiction.
I live in NY, so a lot of (smart) people are ok with it and get the context. There are however plenty of exceptions that react with horror and disbelief and such rigidity of thought that it makes me think they've been completely and utterly programmed to react in this way.
Like others said, it's just a word and its use is contextual and subjective. I refuse to limit my means of expression because a certain word is considered offensive or Démodé. Note that this is not a problem in most northern European countries I've been in (I'm from Sweden).