OrganicFarmWife
Crowing
I've also seen kids who grew up in homeschool or private schools end up less tolerant of people different than them. When you are exposed early to people of different colors, ethnicities, religions, etc, you are often a more tolerant adult.
ETA: I agree with OFW, it can be done right if the parents are conscientious about it.
This can occur regardless of the environment. There are racists deep in multi-cultured schools just as easily as in a home environment. Racism is based largely on hate.