Being a current female student, I'd like to comment on this one. I have flown with 3 male instructors, and have had physical contact with all of them at some time or other, but to differing extents. One in particular is very unaware of personal space, but I fly with him more often, so it's become less of a problem. It does sometimes make me feel uncomfortable, but I don't really want to say anything to him. Obviously if it went too far I would though!
I would say just to be aware of your student's personal space. This can be difficult if you're a big bloke (and most instructors are for some reason) in a small cockpit. Be even more aware during the initial lessons when the student's going to be hyper-sensitive about every little thing, and not aware that physical contact can be a necessary part of training.
Good luck, and I hope your first female student isn't tall, blonde, and curvy!
