Phoenix Rising is the only gay/lesbian bookstore I know of in Richmond (FYI: there's another Phoenix Rising in Norfolk, VA). I've been there a few times and find that it has a very good selection of gay male titles but is a little short on lesbian fiction.
It's not for the family, though ~ it carries a wide selection of gay porn mags that are within easy reach of little hands, and you probably don't want to answer any awkward questions that may result from the covers of the books on display. But Phoenix Rising is an excellent source of GLBT literature (erotic or not) for the Richmond community.
Items they sell include books (fiction, nonfiction, and used), magazines, bumper stickers, cards, games, etc. etc. It isn't a full blown sex store, but they do have a small selection of adult toys, if you know what I mean.
The best thing about Phoenix Rising is their small community section, which includes a bulletin board and free GLBT newsletters or papers (such as the Virginia Gayzette) that help to connect members of the community who identify as gay or lesbian with others.
Overall, I love Phoenix Rising. I wish I had the money to visit it more ... or that it would branch out and open another store closer to me!