There are some situations that require you to adjust your definition of "normal" behavior. For example, the scene above might come across as abnormal if you weren't given the context. Personally, under normal circumstances I'd probably be crossing the street to avoid this guy, or at least staying very close to the cop. One guy in a red dress on a Saturday morning is weird. However, put that one guy into a crowd of over 7,000 men and women also in red dresses and what was once socially questionable suddenly becomes fun. Really, there aren't too many times when a guy can buy himself a dress, wear that dress in public, commend other guys on their dress choices, and still come across as masculine.
One thing I've come to appreciate more since moving to New Orleans is the therapeutic value of doing things that you wouldn't normally do. For opportunities of that sort -- this city is great.
A few photos from the Red Dress Run 2010.