Yes, gays should have the right to serve openly in the military. This all started because gays were once considered a security risk because of blackmail threats, etc. Attitudes have changed since then and those type of risks are almost unheard of today.
As far as Bill Gray's idiotic ranting, those things can easily occur between heterosexuals. People who serve our country and protect us should be respected and it should not matter who a person sleeps with.