the term oriental has a strong racist connotation when referring to people. oriental and yes, Occidental were used to describe "yellow"(more on this later) people. those terms are highly offensive to people that are educated in the history of the words and participated in the civil rights movement of the 1960's. when the term "black power" was being used by black activists, asian activists coined the term "yellow" in conjunction with power, brother, sister, etc.
the general rule of thumb is to never use the word oriental. it's the asian equivalent of negro. the only acceptable use is when refering to a rug. and even that use is a bit borderline. if you know what nationality it is, you should use it: japanese food, chinese food, indian food, etc.; never oriental food. i'm sure that most people on this board know what different countries sushi and peking duck are from.
standing from the point of view being a minority(i happen to be chinese), using racist terms like niggas, chink, fag, etc. are about reclaiming identity and the empowerment to define ourselves. its not about double standards or hypocriscy. being politically correct is not all b.s. its about making sure that future generations not reverting back to the way things were when racism was still even more mainstream than it is today. the term "reverse racism" should speak volumes whenever you hear it.
by the way, never talk about how "you love oriental women" when you first meet someone Asian(which happens a lot more than you may think). it's extremely ignorant, sexist, and borderline racist. and in the wrong situations can cause you to get smacked in the head with a bottle of vodka. true story.
and lastly, here's something to think about: asian/pacific islanders are one of the smallest ethnic minorities in the country, i forget the percentage. but did you know that affirmative action doesn't apply to them?