Cross-dressing friend

I just found out that a friend from across the pond likes to dress up in women's clothing and has a different name when he does so. He was worried that my wife and I would not want to continue being friends with such a revelation. I must admit I was shocked, but, I certainly don't see any wisdom in ending the friendship. I let him know that my wife and I were not into that scene, but, that we support them as friends and continue to care for them. I believe that God made us to be creative people, and, cross-dressing is certainly creative in some sense, so, I'm not sure whether or not it would actually be considered sin. I'll have to study this out a bit. I mean, could a follower of Jesus have such a hobby? What should the church's stance be, Biblically speaking? Food for thought here...