Homophobic

I am currently reading unChristian, which is a social commentary of Christians by non-Christians. Oddly enough, the majority of people do not think that Christians are very Christ-like. I have peeked into this book for quite some time now and finally purchased it a few weeks ago. The funny thing is that as I have been reading it I have not really found any information that I didn't already know. Not that I am a sociologist or anything, but most of the common assumptions and attitudes proposed in the book are pretty dead on. Christians have an image problem that is mostly caused by our own doing. And one of these is homophobic.
So the other night Mel and I are driving home from somewhere and I see this rainbow striped VW Bug. Plastered on the side of it is "FAGBUG.com." At first I couldn't believe that someone would have this on their car, so ofcourse I have to check out the website. Interestingly, it is a woman who had a rainbow sticker on her car and as a result, someone spray painted "fag" and "you are gay" on the side of her car. From there she decided to keep the words on her car and travel the US in order to raise awareness for homosexual rights and the like. Along the way she has encountered many trials and much support but it made me wonder why is she in my little town of Phoenix? Do I want that going on here? As a Christian, and one in seminary, do I think that she should be driving around with FAGBUG on her car? What if children see that?
I guess I simply wonder how Christians, and ones looking out for sinners who need Christ, might address such situations. I know I am to love but to what degree? How can I show support for the homosexual agenda and still hate the "sin"? How can I love my gay neighbor as myself and yet distinguish between loving people and loving sin? Just thoughts on what is commonly a controversial subject.