To remove racism, you may have to go into
SimPE and hack the want tree. I think for Sims 2 Ultimate Collection, you'll have to go into the want tree in the SP9 folder, and go to certain tree items.
WARNING!!! Back up your want tree file BEFORE you start mucking with it. There is a chance that this technique may hose your game (though I am still testing it). Basically, all you do is go to the want-tree items:
Witch:
0x4DD1CDC4 0xB53C770F (-1254328561)
Plantsim:
0x4DD1CDC4 0x5264A138 (1382326584)
Werewolf:
0x4DD1CDC4 0x312EC794 (825149332)
Vampire:
0x4DD1CDC4 0x8FE04166 (-1881128602)
For instance, if you get to an item for simgetscuredwitchgood (forgot the exact name but you'd probably recognize it) then you can look at the aspirations that have the word 'true' after the =. Change it to 'false'. Same for others. Now for fears, just do the same thing to make the people completely neutral. I like to do that because I hate racism, and to me, this whole wanting the paranormals cured smacks of racism. Beh. Blame it on my two anti-racist grandmas.
Just need to repeat the warning: Make sure you KNOW what you are doing, and BACK UP your want trees file. And pay attention to what you are doing at all times in case you make a typo. You don't wanna hose your game... or if you do wanna hose it, do it the cool way and turn Crumplebutt into a vampire