Of course I agree that just using that word to insult someone classifies as racist, but so far I've never seen anywhere in his comments or rants that he actually argumented something against black people.
I spend my days clubbing retard-ns. CLUB! CLUB! DIE N! CLUB! RETARD! N! DIE!! CLUB! N!
Regardless of his mental state, this is not content that I want in any of my online communities.
For all we know Terry means nigger as referring to the religious concept of darkness and would insist it has nothing to do with skin colour.
I'm not saying that is the case here, but it very likely could be and I am saying that we're for more clueless when it comes to empathizing with people like Terry than we think we are.
Even if the racism only comes out during manic periods, it would be difficult to parse that in an online medium. Since very few of us are trained to deal with that sort of episode, it is probably best to avoid the issue entirely.
The best way to satisfy your vuriosity is to read his internal monologue stuff, which he documents religiously: http://www.templeos.org/Wb/Accts/TS/Wb2/Rants/TAD/TADRants.h...