There's a book titled Widescreen Dreams : Growing up Gay at the Movies that might be worth a look?
I liked My Beautiful Laundrette quite a bit too. There's a good one titled C.R.A.Z.Y. that seems to get played on the Sundance channel here a lot which I also liked. Another film, Different For Girls, is more trans I suppose, but some great late '70s-early '80s U.K. music and the two main romantic characters met at a boys school.
Does anyone remember a movie that featured a character obsessed with Cass Elliot music? It may have been Australian (or I've just gotten it mashed up with Muriel's Wedding). I've been racking my brain to come up with it's title to no avail!