@ BurningStake: yes, I am. :) You're welcome.
The book's name was A Maldição de Deus Sobre o Homosexual: o homosexual precisa conhecer a maldição divina que está sobre ele (The Damnation of God over the Homosexual: the homosexual needs to know the divine damnation that is upon him). All the news I read are either from religious sites or gay-oriented sites, so I don't trust them all that much. The one reference I found from a neutral site reports the president of the Association of Travestites and Transsexuals of Mato Grosso do Sul (where the book was reputedly banned) condemning the book for inciting hatred and religious fanaticism.
According to those news, the book apparently incites discrimination against homosexuals by saying they come from deformed families, that they are demonic and depraved and that they incite unsuspecting adolescents and adults to practice sodomy, "malicious and treacherously". Also, it apparently mentions the death penalty as well. No site I've read elaborates on that tidbit.
The death penalty is banned in the Brazilian Constitution of 1988.
The judge declared that the book violates the right for the dignity of the human person, which is one of the foundations of our Constitution, as well as equality and that the author extrapolated his right for freedom of expression when he attributed pejorative and personal opinions to the homosexuals. Also, he banned it under the justification that it might incite violence against homosexuals (it's apparently that virulent).
The banning of the book and the paying of R$2k were decided in separate collective lawsuits (I think... I suck at English legal terms) against the author. That is a right predicted in our constitution, the right to answer if one's dignity is damaged by another's freedom of speech.
Another site says homosexuals burned the book in front of the church the author attends, and staged a protest with banners displaying "dignity" and "discrimination is a crime" in front of said church, as well as placing 20 crosses symbolizing the 20 homosexuals killed between 2006 and 2007 in Mato Grosso's capital.
A site mentions that seven travestites were murdered in the vicinity of where the book was published that year (2007).
IMHO, the judge acted correctly when the Constitution is considered. It is very clear that discrimination is not OK.