From the UK - whatever the total context was, the terms she was using are way out of the ballpark. From here it seems pretty racist language.
Having said that, Obama should not have reacted so swiftly while ignorant of the full facts - everyone deserves a hearing. If he had waited he would not be in this pickle now.
He gave the NAACP exactly what it wanted, the problem was, the NAACP, even though *they* were in posession of the full tape, panicked, wanted the story gone, and decided that Sherrod would have to sacrifice herself to achieve that end. They contacted AgSec Vilsak, who, in turn, contacted Obama, and the rest, as they say, is history.
Right about now, the NAACP is collectively crapping their drawers. They now know, without doubt, that Andrew Breitbart is gunning for them, for the stupid war they decided to start by falsely implying the Tea Party movement is racist. He hit hard in the first salvo, making them look completely stupid, and now, they can only await the next, without knowing exactly how much ammunition he has.
Breitbart has shown himself to be a master at this, with his takedown of ACORN, and the NAACP now knows that they have, by their own actions declared themselves to be "NEXT"...
To paraphrase the late General George S. Patton, "I almost pity the poor bastages, by God, I almost do!"