There's a part of me that would like to give this movie a high rating. Considering that it was made in 1953, this is a very courageous movie about transvestites, tackling the issue fairly seriously and sympathetically (and offering the viewer a lot of information on the subject) and trying very hard not to stereotype. The movie clearly makes the point that transvestites are not homosexuals, and that aside from wearing women's clothing they lead a relatively normal life. It deals with the pain of not being accepted in society - the plot revolves around a police officer (Lyle Talbot) desperately trying to understand the issue because of the recent suicide of a transvestite. So, you have to give everyone involved with this movie credit for taking on such a controversial (in the context of 1953) subject.
Having said all that, I'm also sorry to say that this movie is absolutely dreadful. In trying to portray Glen/Glenda's (Edward D. Wood) pain, the movie falls into silly (and at times surprisingly - again given the era - sensual) fantasies that make the story very hard to follow. The acting is wooden at best. None of the dialogue comes across as real; the actors look and sound like people reading speeches written by others. And - worst of all - there was no point to having Bela Lugosi in this movie. This was another of the increasingly embarrassing roles this poor man took on in the latter stages of his career. "Pull the strings; pull the strings," poor Lugosi's character (called The Spirit in the credits, but really coming across as more of a mad scientist) kept crying. And nothing he did really seemed to have much connection with the rest of the movie.
For artistic merit, the movie doesn't really deserve much more than 1/10. However, for the courage involved in just putting it out, I'll give it a 3/10.