Hero is FANTASTIC, as are the two Scott Lynch novels mentioned in the first post.
Fantasy-wise, I am a huge fan of Sarah Monette's Doctrine of Labyrinths series. It features a crazy gay wizard as one of the main characters and is generally excellent. I also love Lynn Flewelling's novels. One of her series is focused on a gay pairing; the other touches on trans issues. Ellen Kushner's novels are also fantastic as long as you don't mind her tearing out your heart and stepping on it. Pratchett is always fantastic, and I will admit to having a fascination for Jaqueline Carey's Kushiel novels. Finally, I just started reading Jim C. Hines' novels. His first trilogy is about a short, near-sighted, super-smart goblin, and is hilarious especially if you have experience in games like WoW or D&D. His second series, currently in progress, could best be described as taking fairy-tale princesses and making them kick ass.
I have never been a big fan of literary sci-fi, but I have recently become obsessed with Lois McMaster Bujold's Vorkosigan novels. They are about an undersized, oversmart, slightly manic noble who masquerades as the admiral of a mercenary fleet. He also has a string of women who love him, an evil clone, the two most awesome parents in the world, and a cousin who is either a giant idiot or very, very subtle.
Sorry for the length, but reading is genuinely my favorite thing in the world.