Transcript of the relevant section:
Larry O'Connor: Just for the record it's not a secret...Michael Joseph Gross is actually an out-of-the-closet gay man, so I don't think he has any children that I'm aware of...The "hidden-the-deck-next-door-thing" is referring to the fact that Gross visited a reporter who had rented a house next door to the Palin's mansion.
Loudon: Oh! See and that...I mean I'm sorry I did not know that Larry, I honestly didn't, and I could have speculated as much just by several little pieces I had picked up in looking at the sort of psychological profile of someone who behaves like this...attacks someone's children. And then you just don't even want to consider the whole hidden-on-the-deck-next-door-thing.
Outright, unhidden, unapologetic bigotry. And yet the St. Louis tea party chooses to have Loudon as one of their leaders. What does that say about them?
Update: Palingates has a nice take on Gross's reply.