Found these extracts from a message board, it's a good read so I thought I will post it here:
There has been a long-standing rumor that John Lennon was gay or bisexual.
There are the testimonies of several people that point in this direction.
One is that of his step-mother, Pauline Jones Lennon, who married his estranged father when she was 19 in '69. She said that when he was relaxed, there was definitely something feminine about him.
Another is that of his friend, Pete Shotton, who was a member of one of the original Beatles line-ups. To explain his testimony, in April of 1963, John and the Beatles' homosexual manager Brian Epstein went on a vacation in Barcelona, Spain. It has long been rumored that John and Brian became lovers during this trip, or they at least had gay sex.
This testimony is quoted from his 1988 book, "John Lennon In My Life:"
"I visited John at Aunt Mimi's a few days after his return to England, and when he started in about how much he enjoyed Spain, I could hardly resist taking the piss out of him. 'So you had a good time with Brian, then?' John didn't so much as crack a smile. 'Oh, fuckin' hell,' he groaned. 'Not you as well, Pete! They're all fucking going on about it.' 'Actually, Pete,' he said softly, 'something did happen.' John then went on to confide the particulars to me. 'Eppy just kept on and on at me. Until one night I finally pulled me trousers down and said to him, --Oh, fuck it, Brian! Just stick it up me arse then.-- And he said to me, --Actually, John, I don't do that kind of thing. That's not what I like to do.-- I said to 'im, --Well, then, what do you like to do, what kind of thing do you do?-- He said, --I'd like to just hold you.-- So I let him toss me off (Liverpool slang for "make love to me").' 'That's all?' I said. 'Well, so what? What's the big fucking deal, then?' 'Yeah, the poor bastard. He's having a fucking hard enough time anyway. He got roughed up some by a dockworker in a loo because Brian tried to get him to toss him off. So what harm did it do then, Pete?' John asked me. 'The poor bastard can't help the way he is.' 'What's a fucking wank between friends?' I said."
Another is that of Tony Manero, the inspiration for the New York magazine story that later became Saturday Night Fever.
In May 1974, Manero was walking alone through Greenwich Village when he spotted John, singer Harry Nilsson, and another fellow strolling down the street.
"John was my idol. I walked up to him and said, 'I know a lot of people hassle you, but I just want to thank you for your music. You've helped me through a lot of bad times.' Outside Jimmy's Bar, he said, 'Why don't you come inside for a drink?' After we ordered, John switched seats to sit next to me. He said to me, 'Are you gay?' When I told him I wasn't, he looked really disappointed. He could have been joking, but he wasn't. My initial reaction was fear. And yet I wouldn't leave because it was John Lennon. I said to him, 'No, man, I don't go that way.' 'Are you sure?' he said, 'give me head.' I remember Harry was 'borrowing' $100 bills off him. At one stage I went out and when I came back, he was talking to this woman and he said, 'Pauly.' I thought he meant Paul, meaning McCartney. So John turns around and says, 'No, he's much prettier than Pauly. He's got a nicer mouth than McCartney. Paul's got a small mouth.' Then he turned to me and said, 'Let's go out and get some chicks.' This man was giving me a dream to pay millions for. John almost admitted his gay tendencies. So anyway, we went out walking and he put his arm around me. He said, 'It feels good to hold someone. You know what I mean?' Prior to that, he said, 'There is nothing wrong in being gay. Two people exchanging feelings is not wrong. Did you ever try it?' People were following us. We were wasted, and he put his arm around one girl and said, 'Suck my cock.' He stuck his tongue down her throat. We were loaded. Somebody stole the hat right off his head."
Lennon and company meandered over to the Pierre Hotel on Fifth Avenue, where he and Nilsson shared three adjoining suites, rooms 1608, 1609, and 1610.
"There was Harry's bedroom, John's, and a living room with a keyboard. He gave me a guitar, but it was later stolen. After we returned to the hotel he propositioned me again. After he died, I wished I'd done it. He tried to kiss me. He put his arm around me. John was making moves on me like a guy would a chick. When I said 'Halt,' it was finished, and we laid down together on the couch. I love the guy. I never asked him if he'd had sex with a man, but it was obvious to me he had. I stayed at the hotel sleeping on a spare bed next to his for about a week, but he never attempted it again. There were feelings and looks, though. He was very loving, like when a guy is very lonely. The man was bisexual. There are no two ways about it. He was feeling me out."
We turn to Pete Shotton again for the testimony. The two of them dropped acid one night in 1967, they ended up in his attic, and they both passed out on the floor. The next morning, they were awakened by the maid trudging up the attic stairwell. John woke up and on hearing her footsteps, suddenly shot to his feet saying, "Oh Christ, she'll think we've been fucking!"
A famous British radio and television broadcaster, Gloria Hunniford, was a guest at a London bash in 1965 when she and a friend happened to pass by a bedroom door. They peeked inside and what should they find but John Lennon passively engaged in anal sex with a well-known male celebrity photographer. They quickly shut the door and the secret was kept for a long time.