Basically, from what I've seen, it's okay to call others that if they're okay with being called it. However, I usually only see other blacks call each other that, and it was especially frequent when I was little, growing up in the "ghetto's" of Kalamazoo. (Yes people, I did. I lived on a street that was more or less a middle ground between GD and VL. Fun, but I still use the term ghetto loosely.)

It all depends on the individual on the giving end, and how they're using the term, and whether or not the person on the receiving end knows how the person on the giving end is using it.

I personally could never use it. I was once talking about asian people to a friend, and at one point the word "asian" completely eluded my mind and the word "chink" slipped out. I felt shittily guilty afterwards. I can't even bring myself to say racially offensive terms, not even when seriously discussing certain topics.