I voted dress/live or HRT, however, I believe that the first step of transition starts at the moment we begin to understand and accept ourselves to be transgendered. I don't think both HRT and living are required to have transitioned. Depending on the therapist you're working with, they might have a different timetable for these things. With my therapist, in 1993-4, at least a year of RLT was required before HRT could be prescribed. I know there are people who do it the other way, such as Susan/Steve, the Largo city manager, who start with HRT for months before they live openly as their desired gender. Each person's situation is different, and that needs to be taken into consideration.
As Laurie mentioned, it's somewhat different for those of us identifying as androgyne, or another gender entirely. In many ways, I don't feel that transition is ever done, there are plenty of ongoing issues or events, such as coming out to family or friends, etc.
zythyra