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On Thursday, May 14th Uruguayan President Tabare Vasquez announced his government will "allow gays to join the armed forces by scrapping military rules that define homosexuality as a disorder." Vasquez explained his decision saying, " The Uruguayan government does not discriminate against citizens based on their political, ethnic, or sexual identity."

Uruguay's Deputy Defense Minister elaborated, " There were a series of rules...regarding the psycho-physical requirements (for entry into the armed forces) in which homosexuality was seen as a sexual identity disorder, and this is what is being repealed."

The following countries allow gays and lesbians to serve openly:

• Australia
• Bermuda
• Canada
• Germany
• Israel
• Italy
• The Netherlands
• Romania
• United Kingdom
• Switzerland
• Uruguay

The U.S. still has it's "Dont Ask Don't Tell Don't Harass" policy which Obama has promised to repeal, though his promise seems to be wavering lately. In Russia, those alleged to have "sexual identity problems" are to be drafted only during war time stating that "well adjusted homosexuals" are permitted to serve in a normal capacity". In Germany, tolerance towards all sexual orientations is considered to be part of the duty of military personnel and sexual relations (regardless of sexual orientation) are considered irrelevant if outside of "service time" (on the soldier's own time).

The details on Canada (from wikipedia.org):

In 1976, the Canadian Forces issued Canadian Forces Administrative Order (CFAO) 19-20, which allowed members suspected of being homosexual to be investigated and then subsequently released. This order was repealed in 1992, after a challenge by then CF Member Michelle Douglas, thereby allowing gay, lesbian and transgendered people to serve in the Canadian Forces free from harassment and discrimination.

A series of provincial and territorial Supreme Court decisions beginning in 2003 ruled in favour of the legality of gay marriage, and a national law to that effect was passed by Canada's parliament in 2005 by the Paul Martin Liberal government. In May 2005, Canada's first military gay wedding took place at Nova Scotia's Canadian Forces Base Greenwood. Officials described the ceremony as low-key but touching. A similar wedding has since taken place between two male Royal Canadian Mounted Police officers.

Today, the Canadian Forces recognizes same-sex marital and common-law unions, and affords them the same benefits offered to all married or common-law serving members.

During the 2008 Toronto Pride Parade, ten members of the Canadian Forces marched for the first time. One month later, twelve gay and straight members of the Canadian Forces marched in Vancouver's Pride Parade. Lt(N) Steven Churm said, "The message to the public is that the Canadian Forces is an employer of choice. We have employment opportunities that people can pursue, regardless of gender identity, sexual orientation. For our own members, they can be proud of what they're doing and also be proud of who they are."