The NY Times today (Dec. 7) has a slide show about 'Muxes', men who live as women, in the town of Juchitan, Mexico. They are accepted, as they are in several indigenous (American Indian) groups. Juchitan seems to be in a largely Zapotec area.

Hope I get this right-
http://www.nytimes.com/slideshow/2008/12/07/weekinreview/1207-MUXE_index.html?th&emc=th