I fail to see how this is racist. Your logic appears to be any joke an American (assuming he is white) makes about any other race (or nation that is primarily of another race) is automatically rascist. His joke was not insulting nor did it portray any negative or otherwise stereotype. Your main problem is that he doesn't know the difference between a Chinese and Japanese name. Oh the horror. You should have a look at your own prejudices. Part of the problem with ongoing prejudice is people get sick of hearing about it because of overly sensitive responses like the one you just made.
It's not hypocrisy at all! If a muslim said it, he probably wouldn't be joking. If an upper/middle class english guy says it, he probably is. This is in fact exactly the type of humour that should be encouraged. It makes people think about the real issue of stoning people to death, which is obviously bad, and just one of a whole bunch of things the muslim world needs to take responsibility for and put an end to. Now he can't actually say "I think muslims should probably stop stoning people to death" because that would be horribly rascist and insensitive to their "culture." This is actually calling muslims on THEIR hypocrisy, and that's why it's funny.
I just had to do that, except it was for a real academic project, and it was in 1 semester. Sure we didn't have to interpret someone else's spec, but that sure as hell didn't make doing it any easier! Thank god we used SVN or we would never have got it done in time!
It's funny (in a sad, ironic kind of way) because Australia (one of the most 'free' countries in the world) is getting lumped in with China and Iran (two of the least 'free') due to a moron senator by the name of conroy who wants to censor our internet. I doubt they'd get away with banning Flikr in Australia so it would actually be a geniune circumvention here which makes the whole filtering thing completely pointless. Of course conroy would has an almost superhuman ability to ignore the facts. Hurray for democracy.