The word is often used alone or in place of a greeting word such as "hello." Depending on context it either means "You're a Jew in disguise" or "Your mother was raped by a Jew" or "You sleep with a Jew."
In white supremacist circles a woman dating a Jewish man will simply be called a Jigoo to imply she's nothing more than a receptacle for Jewish seamen.
During the video, the man produced a sound which was quickly dubbed "Jigoo". The spelling was debated for some time amoungst DV fans, but 'Jigoo' is now generally regarded as the correct spelling.
It's created from a clip played on DV of men's heads being squashed by chicks legs. One of the women pushed SO hard that one of the guys was like "JIGOOO!" and Tim Henson thought it was very funny.
Slowly but carefully it become the great for DV Freaks and now is used all the time.
It is often mistaken for Jagoo, Chigoo, Jigu and others, but Tim Henson agreed that it should be spelled "Jigoo" and most people agreed.