The American College of Pediatricians has released a draft statement of principles which can be summarized as your sex is chromosomal, determined at conception. If you believe yourself to be something other than what your chromosomes (and your "plumbing") indicate, you suffer from a mental disorder.
They advocate treating the mental disorder, not the physiology which fails to conform to mental self-image. See the whole statement posted at Power Line by Steven Hayward. I've been waiting for someone authoritative to take this entirely sensible position.
The transexual community, however, will really hate being told they have a mental disorder. Truth has nothing to do with how they'll feel.