Crossdressing and homosexuality are two very different things.
25% of males in the UK have crossdressed, that does not make them gay.
People crossdress for many reasons, the main one being it's different and freeing. It's a different experiance.
There is also the case of transgender, which also does NOT make you homosexual. You can be a man who likes women, or a woman who likes men and feel you are infact the opposite gender.
Homosexuality is being sexually interested in members of the same gender. That is all it is. There is nothing else that defines it, so, unless James openly displays an interest in another male character, you can't know either way.
Does irritate me when people say 'oh, hes doing something girls do, he must like men!'
Seriously...