I don't understand what everybody is taking offense to here? I've been totally non-offended by any of this. The fact of this thread is that "Hey, a rumor was around--can you please tell it it was only a rumor?" Well, that rumor was from 1990 and if someone can't tell by now that neither Grover, Bert, or Ernie died, died of AIDS, or were gay then they've missed something somewhere.
I think the topic of the rumors should be ended period. They are just that: RUMORS--from 1990 no less. It's definitely a topic that, unlike our favorite characters, should die.
In the meantime, the question was asked, the answer given, and I'll close this thread now. It's obviously not useful anymore, especially if everyone is going to offend each other without meaning to. Or, whatever.