I'm going to try to take and run with this. I've been thinking about how to tell my daughters (step-10, 4, 2.5) exactly whats going on, but its been kind of difficult. The oldest one knows I wear women's clothes, and when my wife started to talk to her about it, the 10 yr old (just turned 10 today!, Holy Cow!) said something along the lines of "it's okay, girls clothes are so much prettier, softer and more comfy than boys clothes anyway. I understand." It blew my wife (and I when I was told of this) away.
The main problem is I don't live with them. My jobs are here in S. FL and they live in RI (I had to get them out from down here, horrible place to raise a family, and the job market in RI is nearly nonexistent). I get to Skype with them on occassion, and talk on the phone, but it's not enough.