Just got through watching Ouran Host Club, and I must say that I really enjoyed it. It was both hilarious and thoughtful as well as a visually beautiful. I've heard so much of the comedy before, but you know, I think I really liked how it handled gender representation. The sexuality issues were interesting, but I found them lacking in ways that I can't articulate now.
Also, in episode 10, a word is thrown around that is translated to "tranny" in the official Funimation subtitles as if "tranny" is a neutral word in English. The context was that a man dresses as a woman and puts on shows at a bar. This is know as a drag show in the US. Now, had they chosen "transvestite" or "drag/drag queen," it wouldn't have been so bad, but "tranny" is actually regularly used as a slur against transsexuals. Let's be clear: not every man or woman who dresses as the opposite sex is a transsexual. There is a difference between being genderqueer and transsexual; however, these two are regularly conflated by society; thus, "tranny" gets tacked to both groups.
According to wikipedia, the word, "okama (お釜, おかま)," means "'a pot, a kettle', this word, always with the honorific prefix 'O-', refers to a gay man, especially one who is viewed as effeminate or a drag queen. Can be pejorative. The word originated in Edo period slang for the anus. In current use." Thus, while it can be pejorative, in this context and by the way the boys use it, it does not mean the same as "tranny." It is more likely that it should be translated as "drag queen." Good show, Funimation. Let's get our accidental transphobia on, shall we?
All in all, I really did enjoy the series. Both comedic and thoughtful, it really is a beautifully put-together anime, and it's well worth a look.
Here it is on Funimation's official YouTube channel.