We still need a right back. James should go into midfield, either central or on the right, he's not a full-back even if he hasn't done too appalingly this season.
I think you'll find that he attempted to play passing football at the beginning of this season, which has slowly improved over the course of the season, I think he was playing 'hoof' to get the most out of what he had.
By all accounts he lost it all a bit at the end of his reign at Watford. I still like him and reckon he'll have learned a lot there, that he can apply successfully here.