Okay, over these past couple of days i have had so many people i know here asking about how i feel about people using the word 'Gaijin' when refering to me. At first i was like 'it's peachy', but as this question constantly arose from people i spoke with i started to worry. Turns out some TV host was constantly using the word to describe the person of whome's position he took, one Christel Takigawa (i think it is). okay, so she's a french/japanese combo and i'm what? pure Brit.
So in answer to your question: No i dont care when it is used against me within a certain context. however if it is used to show me in a negative light.... i will hurt you ^-^.

Any of you guys who have moved to Japan, let me know what you think.