Wow - my first message on FlyerTalk. Anyway, I lived in Japan for a bit and still have friends there. Here's the advice of a 12-year Osaka resident:

Butch: hardly worth the trouble, few customers these days. But Yuji is still cute and he can speak fair English, and he likes foreigners...

Physique is quiet popular with tourists. All the gai-sen boys who have done everyone in Kansai go there to pick up fresh meat. Again, bartender Hideki is rumored to do more than serve drinks to some customers. The toilet is a disgrace, so go before you go!

Village, the largest gay bar in Japan. Well worth a trip, but first drink and some chocolate is 1000 yen, a bit pricy these days.

Bacchus is a friendly neighborhood bar, the master grew up in Canada and is fluent, and the drinks are only 500 yen. A good place to start an evening or get your barrings, although a bit hard to find, a 3rd floor walk-up.

La Pu is popular with the ladies, but guys go there too. Cozy, but sometimes too much Karaoke.

Frienz is new and owned by an insane Australian named Paul Sully. It should be avoided at all costs. Rumor has it that the bar attracts 14 year olds and rent boys with bad hair. Paul had to open his own bar, as he was banned from most other places in Osaka.

You should be able to find a map and directions on the net. Osaka is a great city with excellent connections to Kyoto and Nara - two areas worth exploring. It's going to be H O T and sticky in July, but you should have fun!