I dug around a bit and found a few sites that discuss Buddhism and homosexuality, for anyone who might be interested.
This page, written by Kerry Trembath, gives a sympathetic (if somewhat Westernized) take on the question. An article by A. L. De Silva, found here, is similar but a bit more in-depth.
Unfortunately, the issue is more complicated than these sources would lead one to believe. If you’re interested in a more scholarly approach to the question, go here. Very interesting reading, I must say. I didn’t realize the old Buddhists were quite so kinky. To summarize, the author argues that there are two opposing views of homosexuality that can be derived from Buddhist scripture, and that these views are in turn promulgated by two separate factions within the Thai monastic tradition (the article focuses exclusively on Buddhism in Thailand). The older, more conservative understanding views homosexuality as the result of karma from previous lives, which implies that it cannot be changed; accordingly, this view tends to have a more compassionate and accepting attitude towards homosexuality. The second view, more modern and more reformist, is connected to an emerging tendency within modern Thai Buddhism to downplay the role of karma and emphasize the control individuals have in their own lives. This progressive view tends to see homosexuality as a choice made by individuals, and is thus much more aggressive in its condemnation of gays and lesbians.
To complicate matters even further, our modern gender concepts don’t really apply well to ancient India. For one thing, the old Pali texts (original Buddhist scripture) identify four genders, rather than the two we are currently acquainted with. In addition to male and female, they also list the * Ubhatobyanjanaka*, or hermaphrodite, and the Pandaka – which nobody really knows what it is, like, but seems to be something akin to an “unmanly man,” probably a transsexual (from Transylvania, maybe?). And the Buddha did ban the Pandaka from becoming monks after a rather unfortunate incident involving some monks, some “stout novices”, an elephant trainer, and a particularly randy pandaka. Thai translators have translated the Pali word “pandaka” in Buddhist scripture as “Kathoey,” a Thai term which has in modern usage become a somewhat demeaning term for homosexuals. Hence the confusion.
By the way, just in case you’re wondering, the Buddha also condemns the following sorts of behaviors: sex with dead people who haven’t been gnawed on by animals (!), sex with dead people who have gnawed on by animals (!!), “auto-fallatio” “The Case of the Nimble-Backed Monk”, and (is this even possible, I wonder?) “auto-sodomy” “The Case of the Monk with a Long Penis”. All of these are straight-forwardly discussed in Buddhist scripture, along with such dubious activities as “monkey-fucking,” which, to judge by the words of the Enlightened One himself, is right out:
However, since I suspect that this is a bit more info that you asked for, Eve, I guess I’ll just shut up now.