I'm pretty sure that, at least in the English subtitling, they do refer to Totoro as "he." I'll ask Andy (he's studied Japanese) what they say in the Japanese audio track.
As far as Catbus. Well, there's a shot where he's jumping over our perspective and, if you've seen "Totoro" as often as i have (or if you slow down the video) it's pretty easy to make out the fuzzy little Catbus testicles.
I see now that Miyazaki is credited with the idea for the story. I also see that it's about tanukis, which I believe are Japanese raccoons. I know the word from Seijun Suzuki's Princess Raccoon (Operetta tanuki goten), and I just noticed last night while rewatching part of Nausicaa that the evil princess calls her councilor "tanuki", which is translated in the subtitles as "You sly fox."
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As far as Catbus. Well, there's a shot where he's jumping over our perspective and, if you've seen "Totoro" as often as i have (or if you slow down the video) it's pretty easy to make out the fuzzy little Catbus testicles.
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