My dad was born in 1931 in Northeast Mississippi. He stayed there until 1949 when he joined the Marine Corps, which was right after the military was desegregated. He fought in the Korean War and after getting discharged, he went back home. He stayed there until 1969, when shortly after I was born, we moved to Kermit, TX. Anyway, my dad would say the n-word, but the way he would say it was never with hate or malice. It just came out casually when talking about someone that was black. He would talk about his n-word buddy from Marine Corps that he served in combat with. I really can't explain it, other than it simply being the way he was raised. He also grew up on the 'black' side of town, as his dad ran a 'grocery' (more like a convenience store/illegal sale of alcohol) store there (where we are from was a dry county and may still be so).
My mom, who was also born in the same town, never once used the word that I heard. Then again, she was also an Army brat and was raised for a bit outside of Northeast Mississippi.
When I was about 12 years old living in STL, there was some busing going on and there were some kids from the city that were coming out to our school. Our heavyweight on the wrestling team was one of those kids. One day during practice some white kid called him a "stupid n-word" because the black kid ran into him when we were running sprints. I was very surprised that the white kid didn't get the shit beat out of him. When I got home, I told my parents the story and my dad, who used that word as casually as you may call someone by their first name, said that the black kid should have beat the shit out of the white kid. I guess what I'm getting at is that although my dad was ignorant about the word, I honestly believe that there was no hate there.
Edited to add: I guess the addition of "stupid" in the above is what crossed the line in my dad's mind.