I'm currently reading How Sex Changed by Joanne Meyerowitz. I've only just penetrated the first chapter, which deals with an overview of sex change history. One of the people (who always gets) mentioned is Einar Wegener, who became Lili Elbe, the first MTF woman. This made me recall a novel about Lili Elbe.
The Danish Girl, by David Ebershoff is the fictionalized biography of Lili Elbe. It deals gently and warmly with her life as she transitioned from Einar to Lili and the full support given her by "his" wife. Ebershoff gives us a very readable story, not just about Lili but how her emergence affected everyone around her, that just pulled me through it. I recommend it highly. There is a film targeted for 2009. Previously read copies are on sale through amazon for as low as $.01.