In the Episode "Jeneji,Kind Yet Sad" Episode 31. InuYasha and Kagome go to a village in hopes of finding some medicine Kilala (or Kirara in the manga) Sango's Cat who was poisoned in a confrontation with Naraku (only one spoiler at a time cant tell yeh about that episode ;-) ) When they get there they see another Half Demon (or Half-Youkai), Jeneji who was more unfortunate then InuYasha to look more demon than human. Jeneji is picked on by his fellow villagers for they think he's been eating people! (when he hasn't mind you) InuYasha eventually helps Jeneji stop the actual demon thats eating people and when Kagome and InuYasha are returning Kagome asks InuYasha "Were you picked on?" or basically thats what she said and he said something like "no, no way i was never a push around" or something like that (basically saying that he was) then he goes on to say "I'm not really anything. Not really human. Not really Demon. I'm not either. I used to think I had no place in this world. Then i realized that i did i have place its just that i was the only one in it" well thats basically what he said its not like i could catch it all.
Submitted by InuYasha Fan_Moonlight Shine