I live in Taos, NM...as well as being a ski destination, there is a really, really old (still-inhabited!) pueblo. Lots of Native American people here.
And being NM, we get lots of Texans in the summer. My (Native) friend is a river rafting guide and shared this gem with me:
She was on a raft with a family...mom, dad, teenage son and daughter. Friend points out a bighorn sheep up ahead, everyone starts freaking out.
Texan Mom: "So since there's game, do you ever see the Indians hunting out here?"
Friend: "Excuse me?"
Texan Mom: "Like, the Indians. They still live out here, right?"
Teenage Daughter: (realizes my friend is Native) "MOM"
Texan Mom: "What, I'm just asking!"
Friend: "Actually, most of us just go to the grocery store."
Texan Mom: "Wow, you're an Indian? Your English is like, almost perfect!"
Teenage Daughter: "MOM!!!!"