No Dana Barron is not gay. It only seems that way to the outside observer.
You're thinking of Jeff Fiorentino the guitarist who she allegedly walked in on participating in a gay act with a male friend of hers. The jury is still out on both of them, but I would bet that if this story is true Dana Barron isn't gay. Neither Jeff or Dana have confirmed or denied this story at the time of this answer. Could go either way I guess.
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Yes Dana Barron who played Audrey Griswold in the original Vacation passed away in 1996 as far as I know.
Edit: (Incorrect^^^^) As of 2012 Dana Barron is still alive. Dana Hill is the one who passed away.
Yes Dana Barron who played Audrey in National Lampoon's Vacation did indeed pass away. Dana died in 1996.
Coco was their dog who is now deceased (dead)
Kelli King, actress and sister of Haley (Hunter) King and Joey King, is not dead.
If you mean the identity George assumes postmortem, the actress' name is Laura Boddington.
Yes she died Oct 1st 2012.
Search for the cast list for that movie, and many will have photographs of the actor/actress