A little story about this movie
I live in San Francisco and I have a supervisor at work whom I'll call "Jose," who is a gay man in his fifties.
Today I said that I recently saw "Can't Stop the Music," and Jose told me he was actually in the crowd in the club where they filmed the live performance scenes at the end of the movie, which took place in SF. What he told me was that they wouldn't allow any gay male couples in the audience, only hetero couples.
Jose's story confirmed the extent to which the people making this movie tried to whitewash the Village People's gayness and pass them off as straight guys. I noticed it myself while watching the movie, and they even discuss it on the DVD's text commentary. And most of the reviews here on IMDB talk about it.
It was completely misguided, but then again, so was just about everything else about this incompetently executed mess of a movie.