For awhile, the Canadian Army was not only allowing transpeople to serve in their true gender, but they were paying for HRT/Surgery.
They've since ceased paying for the surgery [for fear they were attracting people who only wanted their surgery funded], but transpeople are still allowed to serve.
Off the top of my head, I can't remember which European countries allow transpeople to serve, but there are quite a few.
Post Merge: May 18, 2010, 11:43:41 PM
Your change of gender never completely goes away.
While your civilian employer may not know that you changed your gender with Social Security, the military will.
They can always see it on your background check.
Transitioning and serving stealth won't ever be a viable option in the US.
You can either- postpone transition until after the military, or fight for transpeoples' right to serve.