Update: On Wednesday, March 10, after strong protests from faculty, students, and university administrations, Virginia Governor Robert F. McDonnell issued an "executive directive" stating that "discrimination against enumerated classes of persons set forth in the Virginia Human Rights Act or discrimination against any class of persons without a rational basis is prohibited." Read Governor McDonnell's Executive Directive 1 (2010) (.pdf)
For more information, see Inside Higher Ed, the Chronicle of HIgher Education , or the Richmond Times-Dispatch.
The Virginia conference of the AAUP had written a letter to governor Robert McDonnell to protest recent guidance by Virginia’s attorney general, who counseled public colleges and universities that they should “bring their policies in conformance with the law and public policy of Virginia” by removing protections against discrimination on the basis of sexual orientation and/or gender identity from their institutional policies.
In addition, read a letter (.pdf) by Charles Ford, chair of the AAUP's Sexual Diversity and Gender Identity Committee, to Governor McDonnell.
For more background, read more about the attorney general's guidance and about subsequent protests by students, faculty, and others in the Washington Post and in the Richmond Times-Dispatch.