You know I have read this book 3 times and listen to it about 6 times and I knew that Pepe was in love with Madame, but I never thought in a million years that they were both gay until I read this thread.  
I had an idea that Pepe was gay or maybe Bi since you don't know what sex dwarfs were and Pepe could like that bisexual bend to it.  And I wondered why if Madame was straight why was she interested in Bendigo.  Now knowing about the 'Bugger and sod' it makes sense.  I guess being a Yank (no pun intended) I missed out on that.
Now the book makes more sense and I might need to read it again soon.  
The only thing that confuses me is when Madame is telling Glenda about being a female as a King, but being a Queen then he/she is king.  But that makes sense.  Being an old 'Queen'!  OH!  an A-HA moment!  An Old QUEEN!!!!!!    
  
  
  
  
 
This is why I love Terry.  All the little hidden gems and Jewels ( 

) you can find after many readings and picking aparts!