Gloucester, i think your story is WAY WAY WAY WAY, (thousands of ways in fact different from the OP's story.) And in your case the coworker should have been reported (if I didn't slap her silly first) to management. I think the first guy is more an annoying ass then a blatant racist. And I doubt that her saying anything would make much difference, he's likely to just get defensive.. And if the OP already feels uncomfortable around him, making a big deal about everything he does will only make it worse.