If I find this offensive, am I being a hypocrite?

http://www.funnyordie.com/videos/df8207a6e7

In today's society, a fuzziness has developed between what is purely comical and what is considered purely offensive. It is my belief that actions and words within themselves are neutral, empowered only by the motivations of the agent of said actions or words. Where do we draw the line? When does something stop being funny and start being offensive? Is the above link simply comedy with a racial overtone or does it convey a negative image of an entire group of people using comedy as a camoflauge? If I laugh at a joke about Asian people am I wrong to be offended by this? Please visit the link below and let me know what your comments are below.