Step back for a second. If you were a girl, no one would think twice about you shaving your arms and legs. You being a man, no one thinks twice about you having body hair. It being the 21st century and all, no one cares if you get rid of your body hair or not. If you don't like having lots of body hair, there's TEN ZILLION ways to get rid of it- shaving, waxing, depeletories, all that kinda thing. If you get tired of waxing all the time, there is bleaching- it makes the hair lighter so it doesn't stand out as much. Also, realize that we are often our own worst critics- the hair that you have on your body isn't nearly as bad as you think it is.
Relax. That's the first thing to do. Remind yourself that the reason you started working out in the first place was to sculpt your body into something you liked when you saw your reflection. Now, make a decision- do you want to keep your body hair or not? I would suggest letting it all grow out, seeing how that looks, and deciding from there. Perhaps growing it out and then bleaching it- that way you can see if it looks better bleached or if you want to get rid of all of it. If you decide that the best way to show your body off is with no hair, figure out the easiest way for you to do that. Personally I like the Veet system of deplatory cream (it comes with a squeegie to get all the hair off).
As for being concerned about you wanting to get rid of your body hair making you wierd or not- YOU'RE NOT WIERD. How many male models have you seen with body hair? Fabio doesn't have any chest hair- do you think he was just born that way? It's TOTALLY and COMPLETELY normal and OK for you to want to get rid of your body hair. It doesn't make you any less masculine or make you "gay" or any of that other crap insecure men would lead you to think. I know LOTS of girls who would absloutely go nuts over a man who works out and doesn't have body hair. On the other side, I know LOTS of girls who would go nuts over a man who works out and who does have body hair! Isn't that why you work out- to increase your level of attractiveness?
Bottom line is- it sounds like you don't have the self confidence to stand up and say "Yeah, I shave my body hair." You're shying away from admitting that to your friends because you think it'll make you seem wierd. You're so wrapped up in not seeming wierd that you work out in long sleeves (in 100 degree heat) which makes you even more self concious. Take a deep breath, and realize that you're just fine how you are. Whatever you wanna do with your body, you do it and be happy with it. If someone doesn't like it, well, screw them for being so insecure they can't handle the sight of a ripped man who happens to not have any body hair.
I shall send a massive HUG your way and encourage you to post some pix of your hot self in Tilted Exhibition