The term 'racist' is thrown around all to often these days in my opinion.
My interperatation of the term 'racist' is when someone of a particular race actually believes that a person of another race is inferior to them, and does not deserve to be treated equally.
On that note this act is not racist, but could quite easily be called offensive.
Some people may be offended because of the history of black face, some people (in particular the members of the jackson 5) should be offended by this horribly bad portrayal of themselves, but it is not racist.
Australia as a country (im biased, i live here) suffers from racism problems, and a racist history, yet we are one of the most cultrually diverse countries i know of, partly i believe because we have little culture of our own to protect, other than aboriginal culture which we spent years trying to destroy.
A lot of the racism against aboriginal people i believe stems from jealousy 'why should they get free money from the government, they just waste it on booze'. And the constant media coverage of these 'lesser people' who try to enter our country via boats doesn't help either.
On an individual basis though i don't think i have ever met someone who is genuinly racist, we like to judge people on actions, not the colour of their skin. unfortunatly people of a certain race are often judged on the actions of their stereotypes often portrayed in the media, rather than on an individual basis, this is only real evidence of real racism i see often.