Karen,
Kids of crossdressers react to their parent exactly the same way of adults around them. If adults accept it, then kids accept it. If some adults criticize it, then kids do.
Kids are a thorny issue. I try to constrain whenever I visit the school of my kids, but still children there ask me whether I am a man or woman, or why I have long hairs like women, and etc. Children are very outspoken.
Sometimes, my first son says he hates my wearing women's dress, but usually this is when he was upset on me about other issues, such as not allowing him to play some games. He just tried to trade my weakness he think. I worry most about possible teasing from his classmates. Fortunately, no such thing has ever happened, because he enjoys attending the school.
Also there is a playground next to my home. Initially, kids there were curious of me, asking many questions. Nowadays, no more question like other parents here. They become familar to me like people at my workplace.
Essentially, there is no difference between kids and adults.
Barbie~~
