From PEOPLE Magazine Click to enlarge
Once again, Prince Harry regrets. Four years after making the front pages of the British tabs by donning a Nazi costume for a party, the 24-year-old prince has found himself back in hot water. On Jan. 11 the News of the World released a three-year-old video in which Harry is seen referring to Ahmed Raza Khan, a fellow army cadet from Pakistan at Sandhurst military academy, as "our little Paki friend" and jokingly calling another officer-in-training "a rag head."

Apologizing immediately, Harry issued a statement saying he was "extremely sorry for any offence his words might cause" and that "he used the term without any malice and as a nickname about a highly popular member of his platoon."

A friend told PEOPLE Harry was "not remotely" racist. Still, his words stung. While accepting the apology, Inayat Bunglawala of the Muslim Council of Britain told PEOPLE Harry's remarks were "crass and insensitive." And, in The Daily Telegraph, Khan's father "profoundly condemned" Harry's comments.

Just back from vacation in Mauritius with girlfriend Chelsy Davy, 23, and starting helicopter-pilot training, Harry must now meet with his commanding officer and, according to a royal insider, faces "a severe bollocking" (reprimand)—and may have to undergo diversity training.