It's been a long while since I have posted but not much had changed until relatively recently.
My wife and I started couples counseling for several issues including my cross dressing. It helped quite a bit with our relationship.
Then earlier this year, we found out we were pregnant. While going through the pregnancy, we discussed my cross dressing and how to approach it with our child. We came to the conclusion that I would be open about it and it would not be hidden from our child as they grew up.
With this decided, knowing that my in-laws would be around the house more and would probably come across some of my things (like shoes... I wear a 11-12 and my wife wears a 6) they might have some questions. Rather than waiting for them to have those questions, we decided to just tell them. They were extremely supportive and understanding. It helps that they have a gay son who did some cross dressing when he was growing up and they have a bi-sexual daughter (my wife) plus they are old hippies...
The biggest question is for those that didn't hide their dressing from their kids as they grew up, how did you handle things? I am not out to my side of the family (nor do I think I ever could come out without severely damaging the relationship) and I hope to instill the fact that it's something private and not something to talk with strangers about. How did your experience go with this?