Blind ==> Visually impaired (Eg. This section on the bus is reserved for the visually impaired.)
Handicapped ==> Handi-capable : although "handi-capable" for some unknown reason became widely used, this is not a good example. Being "Handi-capable" sematically is just opposite to being handicapped.
Faggots ==> Homosexuals
Blacks ==> African Americans
Indians ==> Native Americans
Mexicans ==> Hispanics
However, keep in mind that one doesn't have to use offensive terms to become insensitive to a group. Political correctness applies not only to the use of ill- or well-chosen terms but also to the whole idea or attitude in your sentence.