I know you didn't imply the following, but I don't think getting traumatized by a woman (or by a girl) in your young age can make you become gay. Simply because I doubt becoming gay is even possible (let science do its thing and we'll know). I think James is indeed scared of women because of Jessiebelle, but I believe he'll get over it someday (actually I don't, because the anime producers don't care about it, but that could happen in a more developed anime).
In fact, science has proven that all animals, including humans, are naturally bisexual- it is simply a preference of one sex over another in an individual's personality that becomes prominent over time.
I like the fact you're referring to the maiden episode as I read the Pokemopolis anti-rocketshipping arguments referring to it yesterday. The fact that a hypnotised James hugs Brock doesn't make him gay. Why? First, Brock is hugging him as much, and no way this guy's gay. Second, James hugs Jessie all the time, so does that make him bisexual? Ridiculous if you ask me! I believe James was more scared than Brock because he's a fearful guy and not as... promiscuous.
Pokemopolis has good points, if rather exaggerated. I'm not saying him hugging Brock makes him gay, but really, it's a fact that the two are huggin and looking quite happy about it. What to make of that is anyone's choice; it is proof of nothing.
Now, the cross-dressing arguments... To me, James has been doing that for ages only to bring humorous moments into the show. I somewhat feel the cross-dressing is apart of his character, or if not, that he's just enjoying it because it's quite funny after all. Finally, I don't like the fact that Pokemopolis refers to James' gay sounding statements in the dub to prove his homosexuality since the real James is the Japanese one!
First off, I'm not referring to the crossdressing. Unless Moltres is female, James was not crossdressing. My point is that he as dressing up as a big, elegant,
flaming bird. Doing a lot of flamboyant things, too. And he's such a drag queen. He
enjoys crossdressing and being ridiculously flamboyant about it. Holiday At Aopulco, anyone? He had a ton of fun with that.
Second, dub characters are not the same as the original characters. Most of the time they are vastly different. But that does not make either any less "real"- it makes them different. And James is quite gay. Kojiro may not be (though probably is), but James is. Even Eric Stuart admitted to playing him as very camp. And what comes out of James's mouth half the time... well, the quotes I presented earlier speak quite loudly. And the infamous "It's times like these that make me want to go straight." (Water Flowers of Cerulean City)
In addition, for all you RocketShippers- James sees Jessie as a best friend. They hug like schoolgirls, neither gets jealous when a sort-of love interest appears, they're like
family. For god's sake, if Jessie were interested in him, would she have tried to marry him off for the money? (Holy Matrimony) If James were interested in Jessie, wouldn't he be rather irritated that she carries a photo of her ex-boyfriend around? (Ditto's Mysterious Mansion) Would he call her old? (The Ultimate Test)
And:
Jessie: "There was something that prevented me from having friends when I was a little girl"
James: "It must've been your personality." (Friend and Foe Alike)
So
romantic.
Oh and who can forget what personal belongings James has with him at all times? (Bad To The Bone) Tabs off soda cans, nail polish, lipstick and mascara, and photos of himself.
Now the tabs off of soda cans...
The tabs off the soda cans holds a special significance. Young girls will often attempt to remove the tab from a soda can completely. If they fail, they can give it to a boy and get a kiss, but if they succeed they give it to a boy and get sex.
*cough* James has many soda can tabs.