Farang is the Thai word for foreigner and thats what we are - foreigners. I suggest you don't take offence where none is intended. However I have to admit that Benjawan Becker's dictionery does not give "Farang" as the word for foreigner (she says foreigner is "Khon dtaang chaat" - คนต่างชาติ). And her word for "European" is Chowyoorop - ชาวยุโรป). Which does make you wonder whether there might be a slightly negative connotation with the word "Farang". I have seen a few situations where it was definitely meant to be insulting, usually from children not accompanied by their parents. Last time I went on a boat trip upriver from BK some kids were diving off a pier into the river and as we passed they laughingly called out "Farang khi nok" (Farang bird shit"!). And up in Isaan little kids used to run alongside my Landrover excitedly shouting out "Farang Dung dong! Farang Dung dong"!! (not sure what that means - anyone know?). But in all cases I think it was just kids being kids and having michievious fun. On the very few occasions when I have been in a serious confontation with an adult Thai, (I used to work in their Dept of Public Welfare where even Mother Theresa would have been driven to expletives - and besides I was very young at the time) the word "Farang" was only one of very many other words that were spoken at me with intent to insult. So context and body language are probably the best indicators.