A question asked at Yahoo!Answers:

Does Buddhism accept homosexuality?

One of the laws of the Eightfold path says "Practice Right Livelyhood" and that means to make sure that your Way of life does not harm anyone directly or indirectly. and i know that some parents and siblings get hurt indirectly when their children "come out" so is buddhism really that accepting of homosexuality?

My answer (right, wrong, or indifferent):

This interpretation is a little too Western, that is to say, dualistic and culturally adapted from monotheistic ethics.

Samma-ajiva, or right livelihood, is the portion of the Eightfold Path you're discussing. The word Samma (right) is important here because translations are misleading. It's not right as in right v. wrong, but right as in "seeing" v. "non-seeing" or "in touch with reality" (Third Noble Truth) as opposed to being deluded by our own prejudices, thoughts, beliefs, or desires (the Second Noble Truth).

Yes, it may hurt to find out that your loved one is a sexual orientation that's not acceptable to you. (You as in the general people, not you specifically.) In Buddhist mindset, though, it's far more harmful to deny reality in favor of deluding oneself and others with what they'd rather see than what is actually there. Taking what is preferred or desired for reality rather than what actually is, is Dukkha, the First Noble Truth (aka suffering).

Homosexuality is not against Buddhism. Some sects may be against it, but the core teachings of Buddhism have only one thing to say explicitly on sexuality, the Fourth Precept, do not engage in sexual misconduct. Of course, misconduct is not defined, but there are guides to deciding what is misconduct. Here are three:
(from: http://www.buddhanet.net/homosexu.htm )

What might be called the universalisability principle - to act towards others the way we would like them to act towards us.

The Buddha makes this same point in the Dhammapada: "The deed which causes remorse afterwards and results in weeping and tears is ill-done. The deed which causes no remorse afterwards and results in joy and happiness is well-done."

The third way of determining right and wrong is what might be called the instrumental principle, that is, that behaviour can be considered right or wrong according to whether or not it helps us to attain our goal (the Buddhist goal is Nirvana).

The link leads to an excellent essay on Buddhist ideology regarding homosexuality.

In any case, homosexuality is not something Buddhism defines as "wrong" because homosexuality is "wrong." Homosexuality is "wrong" in the Buddhist view if it is part of one's path that embodies the Second Noble Truth: not-seeing. And, here we return to Samma of Samma-ajiva ("right livelihood") or living in a way that is not being deluded by our own prejudices, thoughts, beliefs, or desires.