I just came across this fantastic recommendation via Genderfork.com in my Google Reader.
Baby X is a story of a child raised as an experiment. X is raised just named X, and X’s physical sex is kept a very tight secret. Nobody other than the parents know, and they are sworn to exclusive secrecy, telling everybody who asks that X is neither a boy or a girl: just an X. The story follows Baby X as it grows up without any pressure towards either male or female, encouraged strongly in both areas. X thrives in school, but soon complications arise. It’s a very sweet story with a very, VERY good message.
I highly recommend you take the time to click on the above link and read the story for yourself.