So far so good!
The manager confirmed all my best impressions (in fact, I had to bring the issue up, he never mentioned it on his own) - he assured me, in essence, it was none of his business nor of Wal Mart's and there would be no complications. No discussions of bathrooms or any such thing.
He also confirmed that they hoped it would be a full time job and that yes, they tried hard to promote from within and the door was wide open on that score.
I've not been told for sure yet but i'm feeling very good about it.
(and, of course, in an effort to rain on my parade my wife said "I'm hoping you get a job but I won't be shopping at that store as long as they have a man in a dress working there" - I'm thinking it's about time to cut the cord on that issue)