There is an excellent description of the trial testimony to date in the Schroer case, now on trial before the United States District Court for the District of Columbia. It's on Daily Kos: Daily Kos: America in Transition: A Transgender Special Forces Colonel vs. the Library of Congress
The defense seems to be that, in addition to the legal theory that gender identity discrimination is not sex discrimination, Schroer's security clearance might have been in danger. Note to HR managers: gender transition does not endanger security clearances, though it does trigger reporting requirements. That information about security clearances was out there in 2005, and it would have only taken a phone call to DoD to find out. When I interviewed the industrial security chief of a private aerospace contractor in 2005, he knew immediately that gender transition raised no issue, and was able to cite chapter and verse about what constituted a "Reportable Event" for purposes of security clearances.
The Washington Post's take on the trial so far bears out the idea that the defense is relying on concerns about security clearances.
MSNBC's Keith Olbermann gave the story an ironic twist. Bear on roller skates, heh-heh.
As an interesting background, here is Schroer's recent testimony before Congress on a bill to prohibit gender identity discrimination. (at 3:35)
