To put it simply, race-baiting is referring to race in such a way that it's obviously derogatory to that race, but doing so in a way that gives the speaker "wriggle room" to say "Oh, that's not what I meant at all!"
How about some examples from Rush Limbaugh? I didn't provide links - they're from different sites and are all easy to find. There's lots more, but this should suffice:
“Look, let me put it to you this way: the NFL all too often looks like a game between the Bloods and the Crips without any weapons. There, I said it.”
[To an African American female caller]: “Take that bone out of your nose and call me back.”
"The days of them not having any power are over, and they are angry. And they want to use their power as a means of retribution. That’s what Obama’s about, gang. He’s angry, he’s gonna cut this country down to size, he’s gonna make it pay for all the multicultural mistakes that it has made, its mistreatment of minorities."
"Obama's plan is based on his inherent belief that this country was immorally and illegitimately founded by a very small minority of white Europeans who screwed everybody else since the founding to get all the money and all the goodies, and it's about time that the scales were made even. And that's what's going on here. And that's why the president is lawless, and that's why there is no prosecution of the Black Panthers for voter intimidation, because it's not possible for a minority to intimidate the white majority."
"I think Obama thinks of himself as above the job. I don't think he likes the job as much as he thought he was going to like it. I don't think he likes the White House. I think he looks at the White House as confining. I think one of the reasons all these vacations is he gets outta there. He and his wife do not like living there. To them the White House is not a great place of honor, it's a prison, and a lot of presidents have felt that it's a prison, but to them it's like some African-Americans, "Fourth of July ain't no big deal to me, yo." Well, the White House, to a lot of African-Americans, is the same thing."
"It is clear that Senator Obama has disowned his white half, that he's decided he's got to go all in on the black side."