It's been a long time since I had to break the news to someone we know, but when meeting new people, I just say that we homeschool and leave it at that. I smile and allow them the chance to make a comment or ask a question, and if they do not, I let it go. I figure if they want to know why, they'll ask. Very few do. This past w/e, for instance, my sister's SIL (who I see once every several years) asked me what grade my son is in. I replied that he would be in either 5th or 6th depending on the state, but that he was homeschooled. She said NOTHING at all, which I took as a hint that she had some preconceived notions and was uncomfortable with the subject. I chose not to pursue it, though I would have been happy to discuss it with her had she been inquisitive.

I think some people's discomfort may relate to guilt over not doing more advocating/homeschooling/etc for their own child.