Currently on AfterElton.com they have a Gay Literature thread (you can read it here
http://www.afterelton.com/node/33955)
What books have you read and can recommend that have gay/lesbian/bisexual/transgender characters that might be of interest?
One of the books that I read the other day was called Vintage. I got the suggestion from the aforementioned thread. It was a very good read.
"A lonely gay teen bides his time with trips to strangers' funerals and Ouija board sessions, desperately searching for someone to love--and a reason to live following a suicide attempt.
Walking an empty stretch of New Jersey highway on an autumn night, he meets a strange and beautiful boy who looks like he stepped out of a dream. But the vision becomes into a nightmare when the boy turns out to be the local urban legend, the ghost of a star athlete killed in 1957--a ghost with a deadly secret and a dangerous obsession.
Vintage: A Ghost Story is an intense thriller that looks at the dark side of gay urban fantasy, where the dead can never rest and trapped spirits never find peace.
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I've actually read a few books listed in the thread and Vintage was one of my two favorites. The other is from one editors of AfterElton called "Geography Club". You can read a bit of it here:
http://books.google.com/books?id=yKpHUoQwvowC&printsec=frontcover&dq=Geography+Club&source=bl&ots=x0HplJLwLu&sig=Mch6ioqcQpG2IyNAmDwiCUXaVSU&hl=en&ei=n7cPTeX0MMOBlAfz6-WcDA&sa=X&oi=book_result&ct=result&resnum=2&ved=0CCoQ6AEwAQ#v=onepage&q&f=false