Transgenders is a known medical issue?

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I was watching OKTO (one of the local channels) the other day. And it was showing a documentary about transgenders and how this kid, a boy, is exhibiting female tendencies despite being born physically a boy. And how he feels uncomfortable when he is called a boy and made to behave like one. According to the documentary, this is a known medical problem. Apparently, the cause of the problems lies in the brain. The body of the baby is developed as one gender, but due to some genetic... erm... forgot the term used, during the development of the brain, certain processes did not trigger the brain to be developed in the same gender as the body. As such, when the baby is born, as the baby grows up, the baby sees itself as the opposite gender rather than the gender he/she is physically borned with. (ie, thinks he is a girl when physically a boy and vice versa). And this phenomenon happens to one in every... cannot remember the exact figures, number of child born around the world. To date, statistics has the total population of such transgenders at around 3 million. The parents of such children are put in a very difficult spot. On one hand, they have to accept their child is borned like that. On the other, they have to bear the brunt of the bias-ness that society has on transgenders. Have you ever come across any literature about transgender? What do you think? Share your views.