Dear Duped,
I am married to an autogynephile, self admitted, and what you are describing is a man who is already far down the trans train tracks. He may say he is "capable" of a relationship with you, but his primary relationship is always going to be with the woman he'd like to be (or believes he is "inside"). You will discover that his being into you is a way for him to be into what it's like to be a woman. You will always simply be a prop in the relationship he is conducting with himself. An autogynephile rejects male sexuality and his penis--he wants a female body, and sex with a man who doesn't want to be male is, let me tell you from bitter experience, an exercise in frustration for you. You will be reduced to role playing, allowing him to act out his ridiculous sissy fantasies. Some autogynephiles remain heterosexual, and declare that their relationships with women are now "lesbian"; some take their longing for the female experience of penetration (for that's what they think defines woman) the other way, and seek to validate themselves as "women" by seeking out male partners--or so-called "she-males." Autogynephilia is a sexual paraphilia, and such men often have other sexual paraphilias as well, masochism being one of them.
As you are not married and don't have children, my advice to you is to run like hell in the other direction, and to go no contact. This is a relationship with absolutely NO future.