No, I'm not homophobic, and sexual slurs really, really bother me. Anyone busting out words like 'homo' or 'fag' has earned themselves a swift punch in the jaw.
Besides, many of the coolest people I know aren't straight. Hell, my main confidante for when I just need to blow off steam is a lesbian from Kansas who is, to put it bluntly, awesome. Anyone who's going to judge these people for something as trivial as their sexual orientation (not to trivialize homosexuality, but come on--it really shouldn't matter as much as people make it matter) is a jerk.