I run into similar things in this area, where First Nations Peoples/Aboriginals/Natives/Indians/Indigenous People/First Peoples are a significant minority. It is apparently very unPC for Caucasians to refer to them as "Indians", however they themselves, even in professional development programs for teachers aimed at making schools more "inclusive" and which denounced the use of the term "Indian", constantly refer to themselves as "Indians". It is obviousdly the media and PCnuts that are driving that kind of thing.

On a related note, there was a hilarious feature on CBC radio called < a href = http://www.amazon.com/exec/obidos/tg/detail/-/0660179369/qid=1036108773/sr=1-1/ref=sr_1_1/104-8310946-6451113?v=glance>; "The Dead Dog Cafe Comedy Hour" , written by Tom King, who also played the white foil to two Indian characters, "Jasper Friendly Bear" and "Gracie Heavy Hand"... constant references to life on the reservation, perks that Indians get from the government, etc, etc. I couldn't figure out how King got away without being labelled "racist" until I found out that he, too, is an "Indian"... a very talented guy.