It sounds like they've just confused the fruit flies' response to pheromones... a far cry from "sexual orientation". Human sexual development is far more complicated, involving different stages for physical and mental development, and various hormones at different stages of fetal development (I'm paraphrasing from memory - "Genome" by Matt Ridley). I doubt they'll ever identify a single "gay gene", but I think the biological roots of sexual orientation are well established.
http://news.yahoo.com/s/po/20071212/co_po/studyfindsgaygeneinfruitfliesSUMMARY: Scientists have found that a gene can turn on and off homosexual impulses in fruit flies.
Researchers in Chicago have discovered a gene that identifies homosexuality in fruit flies, which can be turned on and off with drugs. David Featherstone, a biologist at the University of Illinois, said that while humans have a similar gene, it has yet to be determined whether that gene has any effect on same-sex attractions in humans.
Researchers have found that fruit flies with a mutated "gender-blind" gene are bisexual. The flies cannot tell the difference between male and female pheromones, according to the Chicago Sun-Times. The mutation strengthens synapses, causing the flies to overreact to the pheromones. This causes the fruit flies to be attracted to both males and females.
"The
mutant males treated other males exactly the same way normal male flies would treat a female," Featherstone said in the article. "They even attempted copulation."
The study tested the hypothesis by giving the bisexual fruit flies drugs that weakened their synapses. Within hours the flies engaged exclusively in heterosexual activity. The group also gave heterosexual flies drugs that strengthened their synapses, causing them to be attracted to both male and female flies. (The Advocate)
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According to the article messing with this gene
...edited for clarity