> Is there a stigma to being mulatto or what.
The word has a lousy history:
http://www.etymonline.com/index.php?term=mulatto
mulatto
1590s, from Sp. or Port. mulato "of mixed breed," lit. "young mule," from mulo "mule," from L. mulus (fem. mula) "mule," possibly in allusion to hybrid origin of mules. Fem. mulatta is attested from 1620s.